Soon to IPO on the Hong Kong Stock Exchange, J&T Express Aims for Fresh Funds of 8 Trillion Rupiah

J&T Global Express is reportedly eyeing funds of $500 million (approximately IDR 8 trillion) from its initial public offering (IPO) on the Hong Kong stock exchange as reported Reuters.

In previous reports, the logistics service provider had targeted $1 billion through an IPO which was targeted in the second semester of 2023. This figure was said to be the second largest share sale in Hong Kong in 2023 after ZJLD Group which raised $675,2 million in April.

Meanwhile, according to other sources as reported Bloomberg, J&T's consideration of an IPO in Hong Kong is because Chinese regulators are increasing supervision of companies operating abroad. Some of J&T's investors are also based in China.

J&T Express was founded by Jet Lee and Tony Chen, top officials of the Oppo cellphone company in 2015. In 2021, J&T Express received an investment of $2,5 billion with valuation reaches $20 billion from Boyu Capital, Hillhouse Capital Group, Sequoia Capital China, to gaming giant Tencent Holdings.

Apart from the IPO, sources revealed that this fundraising is in line with J&T's expansion into China and Latin America.

Ahead of the IPO, J&T Express had time acquired 100% of the shares of Fengwang Information, a subsidiary of SF Holding which operates Fengwang Express for ¥1.183 billion (around Rp. 2,5 trillion). SF is China's largest end-to-end logistics service provider for domestic and international routes.

This acquisition was carried out to strengthen J&T's position in the Chinese logistics market which is currently controlled by SF Holding, as well as competitors ZTO Express and the giant logistics networks owned by Alibaba Group and JD.com. In Indonesia, J&T Express competes with logistics players providing last mile services, such as SiCepat and Ninja Xpress.