According to a filing with the US Securities and Exchange Commission last week, ZTO Express is planning to sell 72.1 million American depository shares at between $16.50 and $18.50 per unit when it lists on the New York Stock Exchange later this month. With an estimated total raising of $1.5 billion, the IPO is likely to be the most valuable US listing of a Chinese company since online retail monolith Alibaba made its $25 billion US debut in 2014. It is also likely to become the biggest IPO in the US this year.

Building market share

Shanghai-based ZTO currently holds around 14.3 per cent of the Chinese logistics market as measured by the number of parcels it handed last year. The company is pursuing a US listing as its most important rivals YTO Express, S.F. Express and Shentong Express look to raise capital and increase their market share through listings in the PRC. ZTO will use the proceeds of its US IPO to buy land and trucks, build delivery facilities and for general strategic development purposes, such as investments in information technology.

Law firms instructed

Skadden, Arps, Slate Meagher & Flom is serving as ZTO’s counsel in the United States, while Zhong Lun Law Firm is handling the Chinese law aspects of the planned IPO. The Skaddens team is led by Hong Kong partners Julie Gao and Haiping Li. Meanwhile, a team from Kirkland & Ellis led by corporate partners David Zhang, Benjamin Su and Steve Lin is advising Goldman Sachs and Morgan Stanley as the key underwriters of the listing, though the backers will receive Chinese law advice from JunHe Law Offices. Offshore firm Maples & Calder is providing guidance on the Cayman Islands elements of the IPO.

Sources: Asian Legal Business; Forbes