New listing | The industry's first 'A+H' shares! S.F. Holding initiates IPO, planning to list on the 27th, with Goldman Sachs and Morgan Stanley as joint sponsors.

Futu News November 19th, $SF HOLDING (06936.HK)$ Announcement released on November 19, 2024, from November 19, 2024, to November 22, 2024, the company plans to globally offer 0.17 billion H shares, expecting the H shares to be listed on November 27, 2024.

Financial Overview

S.F. Holding's revenue increased from RMB 207.2 billion in 2021 to RMB 258.4 billion in 2023, with a compound annual growth rate of 11.7%; the company's revenue also increased by 8.1% from RMB 124.4 billion in the six months ended June 30, 2023, to RMB 134.4 billion in the same period of 2024.

In 2021, 2022, and 2023, S.F. Holding's annual profits attributable to the company's owners were RMB 4.7 billion, RMB 6.2 billion, and RMB 8.2 billion respectively, with a compound annual growth rate of 31.9% since 2021; the period profit attributable to the company's owners also increased by 15.1% from RMB 4.2 billion for the six months ended June 30, 2023 to RMB 4.8 billion for the same period in 2024.

Industry overview

The global logistics industry, as a pillar of the global economy, holds trillions of dollars in market opportunities, enabling goods and services to flow worldwide. In 2023, the total global logistics expenditure was $11.1 trillion, projected to reach $13.8 trillion by 2028, with a compound annual growth rate of 4.4%.

Among all regions, Asia is the largest and fastest-growing market in the global logistics market, one of the lowest concentration areas, with the most attractive growth prospects. In 2023, logistics expenditure in Asia reached $5.1 trillion, accounting for 45.5% of the global market, and is expected to have a compound annual growth rate of 5.5% from 2023 to 2028.

In 2023, China occupies the largest share in Asia at 53.4%, and is expected to grow at a compound annual growth rate of 4.2% from 2023 to 2028, benefiting from sustained economic growth, manufacturing, and consumption upgrades. Benefiting from strong economic growth, ongoing urbanization, growing consumer demand, and the increasing importance of Southeast Asia in global supply chains, the rise of cross-border e-commerce, favorable government policies, and regional trade initiatives driving the increasingly prosperous intra-Asian trade, it is expected that the compound annual growth rate of non-Chinese Asian markets during the same period will reach 6.9%.

Cornerstone investors

Regarding cornerstone investors, Oaktree, Huahan, WT Asset Management, China Pacific Insurance, Green Better, Infini, Wind Sabre, Morgan Stanley International, Ghisallo, Ruijun Asset Management, etc., have agreed to subscribe at the offer price or induce their designated entities to subscribe for a total amount of approximately 0.205 billion US dollars (assuming the offer price is HK$34.30, the median of the offer price range).

Use of Proceeds

As for the use of funds, S.F. Holding expects the net proceeds of the global offering to be approximately 5.661 billion Hong Kong dollars (calculated at the median issue price of HK$34.30). According to the prospectus, S.F. Holding intends to use the proceeds from the global offering for the following purposes:

Approximately 45.0% of the net proceeds will be used to enhance the company's international and cross-border logistics capabilities; approximately 35.0% of the net proceeds will be used to enhance and optimize the company's logistics network and services in China; approximately 10.0% of the net proceeds will be used for research and development of advanced technology and digital solutions, upgrading the company's supply chain and logistics services, and implementing related measures; approximately 10.0% of the net proceeds will be used for working capital and general corporate purposes.esgRegarding the relevant measures, the net proceeds of approximately 10.0% will be used for working capital and general corporate purposes.