Best Logistics backed Alibaba setup IPO at New York

Best Inc. supported Alibaba set an initial public offering (IPO) in New York stock exchange valued at US$932 million. The Hangzhou-based company that serves the shipments has a 40 percent package volume of world market share by 2016. The company plans to sell 62.1 million shares in the range of US$14 per share.

Tinuku Best Logistics backed Alibaba setup IPO at New York

Best Logistics says it will use net proceeds from the IPO for continued investment in technology infrastructure, service development and additional solutions, expansion of supply chains in the network, and balance for general corporate purposes.

Shao-ning Johnny Chou established Best Logistics in 2007 with 14.7 percent share, while Alibaba Group Holding Limited through Alibaba Investment and Cainiao Smart Logistics Investment held a 23.4 percent share.

China is the world's largest shipping service market where in 2016 it has a total packet volume of over 30 billion or more than 40 percent of the world's total package volume. Industry revenues reached nearly 400 billion yuan (US$61.32 billion) in 2016 or up 44 percent from a year earlier.

Best Logistics revenue increased 68 percent year-on-year in 2016 to 8.8 billion yuan. During the first six months of 2017 it has recorded earnings of 134 percent to 8.1 billion yuan. Most of it comes from Alibaba's e-commerce website, including Taobao Marketplace and Tmall.