Sandalwood: J&T Express Swiftly Applies for IPO After Joining Forces with SF Express

On Jun 16th, J&T Express submitted an IPO application to the Hong Kong Stock Exchange, with plans to raise $500 million to $1 billion.

Three years of rapid growth leading to IPO

According to Sandalwood data, in Aug 2020, J&T Express had a daily order volume of 5 million, which increased to 10 million in Oct 2020 and surpassed 20 million in Dec 2020. In comparison, it took the Tongda faction (i.e., STO, YTO, ZTO and Yunda) more than ten years to reach 20 million daily orders. In May 2022, J&T Express exceeded 40 million daily orders. Remarkably, it took J&T Express only two years since its launch in Mar 2020 to achieve this milestone. In May 2023, J&T’s order volume reached a new record high, further narrowing the gap with the Tongda faction.

Click to enlarge — Sandalwood China Logistics data for J&T Express from Aug 2020

According to the prospectus, J&T Express has maintained strong growth in the Southeast Asian market, with a compound annual growth rate of 47.6% from 2020 to 2022.

J&T Express acquires FWX, partnering with SF for cross-border operations

Just a month ago, J&T Express acquired SF’s FWX business for 1.2 billion yuan, marking its second acquisition following the purchase of Best Express China at the end of 2021. The acquisition of FWX is expected to bring J&T Express an additional monthly shipment volume of nearly 100 million, further strengthening its market share in the domestic e-commerce express delivery sector.

According to the prospectus, J&T Express initiated a Series D financing round in May, accepting a $200 million investment at a price of $7.65 per share, which represents a nearly 50% discount compared to the previous round’s issuance price. SF, holding a 1.5% stake, is likely the investor, which has never appeared in previous financing rounds.

With SF’s investment, J&T Express gains access to overseas customer resources and a comprehensive end-to-end network covering Southeast Asia, the Middle East, and South America, complementing SF’s cross-border aviation network. This strategic collaboration positions J&T Express to seize market opportunities in the rapidly growing Chinese cross-border e-commerce market.

We will continue to monitor J&T’s order volume and market share data in the future. For more recent, please contact us at Service@Sandalwoodadvisors.com.

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