Another initial public offering (IPO) in the U.S. is being planned next year by a Chinese company backed by tech giants Alibaba Group Holding Ltd. and Foxconn, according to a report by The Wall Street Journal.
Sources said that Best Logistics Technologies Ltd. is set to make preparations for the IPO as early as January next year.
Earlier this year, the Hangzhou-based company was able to raise about $760 million from new investors, bringing its valuation to more than $3 billion. The company said its investors included Alibaba's logistics unit, Cainiao Network, Fosun International Ltd., SoftBank China Venture Capital, and the World Bank's private-sector investment arm, International Finance Corp.
Investors have poured in billions of dollars to Chinese logistics companies which support the rapidly growing e-commerce industry in the country.
In October, ZTO Express Inc made this year's largest IPO in the U.S. after raising more than $1.4 billion. But the company's shares dropped 15 percent from their IPO price during the first day of trading because it was priced at $19.50 per share, which is higher than the expected price range of $16.50 to $18.50 per share.
Best Logistics, which was founded in 2007 by Johnny Chou, the former co-president of Google China, has already built a warehouse and distribution network in the country.
In China, the company manages 400 centers while it maintains three warehouses in the U.S. and one in Germany. This year, it opened its logistics business in Australia, Thailand and Japan. In addition, the company also delivers local and international package for Chinese online shoppers.
Since 2009, Alibaba has been investing in Best Logistics. It bought 22 percent of shares for the sum of $256 million, its 2016 annual report said. This year, Cainiao Network bought 5 percent stake in Best Logistics for $165 million.
The other shareholders of the company include Chou, Foxconn and Goldman Sachs Group Inc's private-equity investment arm.
In its latest funding round, Goldman Sachs served as advisor to the company. The funding round was led by Chinese fund-management firms Everbright Asset Management Co. and Citic Private Equity Funds Management Co.