J&T Global Express Plans $13 Billion IPO in Hong Kong, Pared Down from Initial Target

Courier startup J&T Global Express is preparing for an initial public offering (IPO) in Hong Kong to achieve an approximately $13 billion valuation. 

The company, which originated in Indonesia and has since expanded its footprint across Southeast Asia and China, had initially aspired to raise $1 billion in its IPO. However, after discussions with potential investors, it ultimately scaled down this amount to $500 million. The prevailing pessimistic sentiment influenced this decision in the market.

While a listing could occur later this year, no final decision has been made, and various aspects, including the size and timeline of the IPO, are still subject to change.

All three sources who provided insights into the IPO have chosen to remain anonymous to protect the confidentiality of the IPO details. J&T Global Express has refrained from issuing any comments regarding this development.

Launched in 2015, J&T Global Express has become a major player in the courier and e-commerce delivery sector. Founded by former OPPO executives Jet Lee and Tony Chen, the company initially established itself as Southeast Asia’s leading e-commerce delivery service.

In 2021, J&T acquired the express delivery business of Best Inc., a company backed by Alibaba, in a transaction valued at approximately $1.1 billion. The acquisition paved the way for J&T’s rapid expansion into the competitive Chinese market. Its presence extends beyond Asia, as the company operates in Latin America and the Middle East.

During its latest funding round, J&T Global Express attracted investments from key players. It includes Chinese courier giant S.F. Holding with 26.14 million shares, equivalent to a 1.54% stake in the company. 

In 2021, J&T secured $2.5 billion in funding, with support from investors like Boyu Capital, Hillhouse Capital Group, Sequoia Capital China, and Chinese tech-heavyweight Tencent Holdings. This funding round enabled J&T to strengthen its financial position in preparation for its Hong Kong IPO.

While the company is headquartered in Indonesia, many investors have ties to China. Coupled with its substantial operations in the Chinese market, this prompted concerns within the company regarding potential scrutiny from Beijing. The decision to list in Hong Kong aligns with this shift in regulatory dynamics and ensures a smoother IPO process.

J&T Global Express is expected to impact the Hong Kong market, with its IPO anticipated to be the second-largest share sale in the region in 2023. This status is surpassed only by Chinese spirits manufacturer ZJLD Group, which successfully raised $675.2 million in April. 

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