Logistics platform GogoX is mulling an IPO that could raise it as much as $500 million.
The Hong Kong-based company, which could list this year, is in preliminary talks with several investment banks regarding a possible IPO in Hong Kong, according to a Bloomberg report. GogoX is also rumored to weigh the possibility of going public through a special purpose acquisition company in the U.S., the news outlet said.
The size of the IPO is expected at $400 million to $500 million.
In September, New York-traded logistics firm ZTO Express (HKEX: 02057; NYSE: ZTO) completed its Hong Kong listing that raised HK$9.81 billion ($1.27 billion). The stock was performing well up until early March and is now trading below its offering price of HK$218 per share.
The logistics arm of JD.com (Nasdaq: JD; HKEX: 09618) filed for a Hong Kong IPO in February, targeting a valuation of $40 billion. Bloomberg has reported that the share sale could raise around $5 billion.
If GogoX goes with the U.S. as its listing destination, it could face significant volatility. This month, trade tensions between Washington and Beijing have worsened after a verbal battle between the two sides in Alaska. In addition, the U.S. Securities and Exchange Commission has just adopted interim final amendments to implement measures under the Holding Foreign Companies Accountable Act, a bill signed into law by President Joe Biden’s predecessor in late 2020 that could delist Chinese companies from the U.S. exchanges if they refuse to comply with auditing standards.
Established in 2013, GogoX has expanded from Hong Kong to international markets including mainland China, South Korea, India, Vietnam, Singapore, Taiwan. According to the company, it now covers over 300 cities and has more than 8 million drivers in its network.
Formerly known as GOGOVAN, the company reportedly raised $250 million in funding in 2018 from investors including Alibaba (NYSE: BABA; HKEX: 09988) and InnoVision Capital.