Chinese courier SF to raise US$752 million via Hong Kong shares, bonds

SF Holding, China’s largest courier, announced plans on Thursday to raise more than HK$5.9 billion (US$752 million) through a new share placement on the Hong Kong exchange and the issuance of convertible bonds.

Proceeds from the HK$2.9505 billion equity placement and HK$2.95 billion in zero-coupon convertible bonds would be used for the firm’s international and cross-border logistics capabilities, research and development of advanced technologies and digital solutions, capital structure, and general corporate purposes, it said in a stock exchange filing.

Its shares opened 3 per cent lower at HK$44.80 in Hong Kong on Thursday, while its Shenzhen shares dropped 3 per cent to 48.80 yuan at the open.

The transactions represent Shenzhen-based SF’s first offshore fundraising since its initial public offering in Hong Kong in November, which raised HK$5.83 billion and became a bellwether of a recent wave of mainland China-listed firms issuing Hong Kong shares, known as H shares.

SF plans to place 70 million H shares at HK$42.15 each, a discount of about 8.8 per cent to the closing price of HK$46.20 on Wednesday. The additional shares represent around 29.2 per cent of the enlarged H-share capital and about 1.4 per cent of total issued shares.

Meanwhile, the convertible bonds due in 2026 have an initial conversion price of HK$48.47 per share, a premium of around 4.9 per cent to Wednesday’s closing price. When the stock hits the conversion price, these bonds will be converted into about 60.9 million H shares, representing about 26.4 per cent of the enlarged H-share capital and about 1.2 per cent of total issued shares.

South China Morning Post