Shanghai Yuantong Express (Logistics) Co looks set to become China’s first privately owned courierfirm to become a publicly traded company, according to media reports in China.
Citing an insider from the delivery firm, the Guangzhou-based newspaper 21st CenturyBusiness Herald reported that Shanghai Yuantong Express (YTO) had hired an accounting company toaid its listing process, and that it would become a publicly traded company by the end of 2015 “ifeverything goes smoothly”.
Senior-level management staff also confirmed to the newspaper that the express company wasseeking an initial public offering (IPO), according to national news service China Daily. Avice-president from YTO was quoted saying the company was “making all-round preparations for anIPO” and that the preparation work had started as early as 2011.
Founded in 2000, YTO says it has 20,000 delivery vehicles and more than 100,000 employees,along with access to an air network covering 76 airports and 760 flights per day. It lists around5,000 branches in more than 1,380 cities across China, with package services also offered to HongKong, Macau, the Middle East and south-east Asia.
CEP-Research reported last month that Shanghai YTO Express had joined a coalition led byChinese e-commerce giant Alibaba Group to create a world-class nationwide next-day domesticdelivery and logistics network in China. Fellow express delivery provider SF Express is also saidto be participating in the project.
Jack Ma, founder and CEO of Alibaba Group, announced plans two years ago to invest more thanUS$1.5 billion (€1.12 billion) to build the “non-proprietorial” nationwide network of warehouses ina bid to “revolutionise China’s fragmented logistics and distribution sector”, as part of anoverall estimated US$15 billion delivery-network investment by the coalition.
