Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, curates her favorite stories in this exclusive weekly newsletter.
Sometimes, the most exciting part of online shopping is the anticipation of receiving your package. And that’s where a fast and reliable express delivery service comes in. In Asia, the sector is experiencing tremendous growth, fueling the rise of startups like J&T Global Express in Indonesia. And now, investors have the opportunity to get in on this phenomenon as it prepares for its stock market debut.
J&T Global Express aims to raise up to HK$3.9 billion ($500 million) in Hong Kong. If successful, it would become the city’s second-largest listing this year with an expected market valuation of $13.5 billion.
While it’s raising less than initially anticipated and falls below its $20 billion private valuation from two years ago, this discrepancy is more a reflection of the current weak global IPO market. Hong Kong has seen a significant decline in listings this year, with only 44 compared to the previous year’s figure, down two-thirds. Additionally, the Hang Seng index has fallen over 12% in 2021.
However, J&T Global Express has been fortunate with its timing. Since its launch in Indonesia in 2015, it has capitalized on the booming e-commerce industry in Southeast Asia, quickly becoming the region’s leading e-commerce delivery service. Its expansion into China in 2020 proved to be perfect timing as the pandemic led to increased demand for e-commerce and courier services, helping J&T become one of the top five courier services in China.
The strong demand in Asia, coupled with the ability to secure major corporate clients, has enabled logistics companies in the region to achieve profitability faster than startups in other sectors. The Asia Pacific logistics market is valued at nearly $4 trillion and remains relatively fragmented. This has resulted in the emergence of several highly valued unicorns in the industry.
J&T Global Express’ upcoming listing will set the stage for the valuations of its top regional competitors, Cainiao Smart Logistics and SF Holding, who have also filed for listings in Hong Kong this year.
Our exclusive newsletter for premium subscribers is published twice a week. On Wednesdays, we provide in-depth analysis of a trending topic from a global financial hub. And on Fridays, we delve into the major themes of the week. Sign up today here.
Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
