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J&T Express’ $500m IPO to support expansion into new markets
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Indonesia's six start-up “unicorns” are shown on a screen on Aug. 3, 2021. The six are ride-hailing company Gojek, e-wallet firm OVO, online travel agency Traveloka, logistics company J&T Express and e-commerce platforms Tokopedia and Bukalapak. (JP/Norman Harsono)
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ndonesian logistics start-up J&T Global Express is seeking to raise some US$500 million through an initial public offering (IPO) in Hong Kong that the company expects will be completed on Oct. 27.
The IPO will involve the sale of 326.6 million shares of the company at HK$12 (US$1.53) apiece between Monday and Oct. 19, according to a J&T filing with the Hong Kong Exchanges and Clearing Market (HKEX) on Monday, which has approved the sale.
Based on that valuation, J&T will have a post-issue market capitalization of $13.5 billion, according to its prospectus, aligning with a recent funding round in May but below the company’s 2021 valuation of $20 billion.
The IPO target was short of the $1 billion the firm initially aspired to raise in May, but the reduced size was a response to subdued market conditions, with J&T’s new share sales down by nearly 80 percent versus the same period last year, Bloomberg reported.
This would be the second-largest IPO of the year on the city’s stock exchange. The listing of Hong Kong Chinese spirit maker ZJLD raised about $677.6 million in April.
J&T plans to direct the capital toward expanding its logistics network, improving infrastructure, strengthening sorting and warehouse capacity as well as capabilities in Southeast Asia and other existing markets, according to a Bank of America (BofA) Securities’ statement released on Monday.
The funds raised in the IPO would support the company’s expansion into new markets, investment in research and development, as well as working capital, among many others, the statement also says.
