Alibaba-backed Chinese supply chain firm BEST debuts on NYSE

Rodiano Bonacci
Settembre 21, 2017

Chinese logistics firm Best Inc priced its USA initial public offering at the bottom of expectations, raising $450 million after it revised terms of the deal to cope with tepid investor demand.

Best Inc previous expected its price range of $13 to $15 per ADS.

The Best IPO came after the company reportedly priced 45 million American depository shares (ADS) at $10 each, the bottom of a $10 to $11 indicative range.

However, even after reducing the size and price, Best would still be the largest listing from a Chinese company to list in the United States so far in 2017.

The company started trading at $11.48 per share on Wednesday, jumping 14.8 percent from its pricing. Total revenue rose 133.5 percent to 8.10 billion yuan, driven by its freight and express delivery business. Its multi-sided platform combines technology, integrated logistics and supply chain services, last-mile services and value-added services. Alibaba was interested in buying as much as $150 million in Best's downsized IPO, Bloomberg reported. The company has a strategic relationship with its largest shareholder, making it a key logistics provider to the world's largest retailer, as Alibaba's platforms serve more than 10 million merchants and more than half a billion consumers.

Best Inc was founded by Johnny Chou, which was the former Google executive. As of June 30, the company had an accumulated deficit of $244 million and for the six months ended June 30, it experienced a net loss of $24.2 million.

Investors kept a close eye on IPO this year, as public offerings have been slowing down these years.

The new IPO, however, was still the biggest offering by a Chinese firm in U.S. since rival express delivery firm ZTO Express raised $1.4 billion in October.

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