China Logistics Company Raises $1.4 Billion in U.S. IPO

HONG KONG—A Shanghai-based logistics company tied to China's booming online-shopping industry has raised $1.4 billion in the largest U.S. initial public offering this year, according to people familiar with the matter.

ZTO Express Inc., which delivers parcels for businesses including Chinese e-commerce giants Alibaba Group Holding Ltd. and JD.com Inc., agreed late Wednesday to sell 72.1 million shares at $19.50 a share, the people said. On Friday, the offer's indicative range was set at $16.50 to $18.50 a share ahead of the company's global roadshow.

The offer, which could rise to $1.6 billion if an overallotment option is fully exercised, is in excess of the $1.3 billion raised by Japanese messaging-app operator Line Corp. in its New York and Tokyo IPO in July.

ZTO's offering is also the biggest IPO of a Chinese company in the U.S. since Alibaba raised $25 billion in New York in 2014.

ZTO is set to list its shares on the New York Stock Exchange on Thursday.

A spokesman for ZTO declined to comment.

ZTO plans to use most of the money from the IPO to purchase land, build facilities and buy equipment to expand its sorting capacity. It intends to use the rest of the proceeds to acquire more trucks, invest in information technology and for potential strategic transactions.

Morgan Stanley and Goldman Sachs Group Inc. are lead managers for the IPO. China Renaissance, Citigroup Inc., Credit Suisse Group AG and J.P. Morgan Chase & Co. are also working on the offering.

Write to Alec Macfarlane at [e-mail]

(END) Dow Jones Newswires

October 26, 2016 23:35 ET (03:35 GMT)

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