SF Holding raises $749m with ‘flat’ Hong Kong listing

Chinese express giant SF Holding raised $749.3m in a listing on the Hong Kong Stock Exchange that will be used to fund plans to expand internationally.

The company, which owns SF Express and SF Airlines, said that through the IPO it aimed to “further promote [its] internationalisation strategy, establish overseas equity financing platforms, optimise international brand image, and enhance comprehensive competitiveness”.

The share opening price was set at HK$34.30 and eventually rose to an intra-day high of $35.50 in what was described as a “flat” opening by Reuters and a “lacklustre” debut by the South China Morning Post.

The company said that over the past decade it had moved from being China’s leading time-definite express delivery firm into a global logistics service provider.

“The Company provides full-spectrum logistic services, including time-definite express delivery, economy express delivery, freight delivery services, cold chain logistics services, intra-city on-demand delivery services, supply chain services and international logistics services, and provides one-stop solutions to multinationals, large corporations, small and medium enterprises and retail customers,” SF Holding said.

As part of its international expansion, SF Holding has expanded its fleet of freighter aircraft and it now operates around 90 freighters, up from around 40 in 2017.

Earlier this year it also struck a partnership with Etihad Cargo on services between China and Abu Dhabi.

In the first three quarters of 2024, the Company achieved a revenue of RMB206.9bn, representing a year-on-year increase of 9.4%, and net profit attributable to owners of the Company of RMB7.6bn, representing a year-on-year increase of 21.6%.

Etihad Cargo and SF Airlines add freighter service and expand partnership