Indonesian last-mile logistics company J&T Express is exploring the possibility of shifting its initial public offering (IPO) venue from the US to Hong Kong, according to a Bloomberg report.
The Indonesian unicorn, which is backed by Chinese investors, is said to be looking to raise $1 billion in its IPO targeted next year, the report added.
The company is also understood to have appointed Bank of America Corp, China International Capital Corp. and Morgan Stanley.
As reported in June this year, J&T Express is said to have raised over $2 billion in a new funding round backed by Chinese PE giants Hillhouse Capital and Boyu Capital, as well as Sequoia Capital China. At that time, its reported pre-money valuation was pegged at $6 billion.
While the company is Indonesia-based, it has a significant presence in China. Tighter regulatory scrutiny on overseas-listed companies is said to have prompted the company to consider the IPO venue change plan, the report added, citing sources.
J&T had previously planned to seek a US IPO as soon as the fourth quarter, Bloomberg News reported in April.
J&T Express was founded in 2015 by former OPPO executives Jet Lee and Tony Chen. The company carries out intra-city, inter-city and inter-provincial deliveries, while also providing warehouse and supply chain solutions for e-commerce merchants in Indonesia.
J&T has also expanded significantly in the other Southeast Asian markets in recent years to cover Vietnam, Malaysia, Thailand, Cambodia, Singapore and the Philippines. In China, it is understood to be taking on Alibaba’s ecosystem of express couriers, its own logistics firm Cainiao, as well as a number of investee companies ZTO Express, YTO Express, STO Express.
On-demand logistics and delivery firm Lalamove too is looking at shifting its planned US IPO to Hong Kong, Bloomberg News reported in July.
A total of 37 Chinese companies have raised $12.6 billion via US IPOs so far this year, according to Dealogic, nearly double the $6.6 billion raised over the same time last year.