China Postal Express & Logistics, part of China Post Group, has been given the green light fora RMB 10 billion ($1.6 billion) IPO by the country’s financial regulator in a pioneering move for
Chinese express and logistics companies.The China Securities Regulatory Commission (CSRC) approved the plan at a meeting on Friday,the official Xinhua news agency reported. It did not state when the share flotation would takeplace.
The IPO, originally planned for 2011 but then delayed due to financial market conditions, isexpected to be the largest IPO in China this year.
The China Post express and logistics division plans to sell up to four billion shares on theShanghai stock exchange to invest in expanding its air and ground fleet and infrastructure,according to a prospectus published last month.
China Postal Express & Logistics (CPEL) had turnover of RMB 25.9 billion (€3.16 billion)and profits of RMB 901 million (€110 million) in 2011, according to Reuters. It is the largestparcel and express delivery organisation in China and operates an airline under the name ChinaPostal Airlines.
The Chinese express industry is expected to grow at about 20 per cent a year over the comingyears, according to the next Five-Year-Plan, according to Xinhua.
