China Postal Express & Logistics, part of China Post Group, aims to raise nearly RMB 10billion ($1.6 billion) in an IPO to invest in expanding its air and ground fleet and
infrastructure, according to media reports.The China Post express division plans to sell four billion shares on the Shanghai stockexchange, according to a prospectus published by the China Securities Regulatory Commission (CSRC).It would be the largest IPO in China this year if it goes ahead. An IPO for the company was alreadyplanned for 2011 but was delayed due to financial market conditions.
The China Daily newspaper wrote that the commission would review the plan on Friday (May 4).According to the prospectus, the money raised by the IPO would be invested in vehicles, aircraftand new buildings.
Postal Express & Logistics (CPEL) had turnover of RMB 25.9 billion and profits of RMB 901million in 2011, according to Reuters.
The division was co-founded by China Post Group and provincial postal companies as a state-ownedlimited company in June 2010, integrating the EMS express unit and the logistics business, ChinaPost Logistics. It is the largest parcel and express delivery organisation in China and operates anairline under the name China Postal Airlines. It has a distribution network covering 31 provincesand regions, and has 45,000 branches, according to information on its website.
Internationally, CPEL is the Chinese EMS partner and is a member of the Kahala Post Group, aninternational postal alliance offering express services.
