IT&Software

Alibaba-backed Best Inc Files IPO Of Up To $750 Mln

Alibaba-backed Best Inc Files IPO Of Up To $750 Mln

Best Logistics Technologies, a delivery company backed by Asian technology giants Alibaba (BABA) and Hon Hai Precision Industry (2317.TW), is planning an IPO in NY. They include rivals S.F. Holding, YTO Express and STO Express which listed in Chinese markets, and ZTO Express, which raised $1.4 billion with a listing in the New York Stock Exchange (NYSE) in October.

Best's biggest business line by revenue is its express-delivery unit, followed by its freight-delivery division and supply-chain management services. Best Inc.is the latest in a string of IPOs by major players in China's logistics space.

The company, which gets most of its business from Alibaba, has seen its stock fall more than 25 per cent since its offering, beginning with a 15 per cent plunge on its first day of trading.

More news: China landslide site evacuated over concerns of 2nd slide
More news: Watch These Indian Stocks as Modi Digs Into Trump's First Working Dinner
More news: US Federal Reserve Raises Interest Rates Despite Lower Inflation

Best Logistics' biggest shareholder is Chinese web behemoth Alibaba, with about 23%. Private equity firm China Renaissance Capital Investment holds 11.3 percent of the company, while venture capital firm IDG-Accel China Capital has another 6.2 percent. Alibaba is the publisher of the South China Morning Post.

Citigroup, Credit Suisse, Goldman Sachs, J.P. Morgan and Deutsche Bank are underwriting the offer.

The proposed share price and the amount of shares that the company plans to issue were not disclosed, according to a company announcement. Thomson Reuters publication IFR previously reported that Best Inc's IPO could reach $1 billion.