Chinese courier SF to raise US$752 million via Hong Kong shares, bonds

SF Holding, China’s largest courier, announced plans on Thursday to raise more than HK$5.9 billion (US$752 million) through a new share placement in Hong Kong and the issuance of convertible bonds.

Proceeds from the HK$2.9505 billion equity placement and HK$2.95 billion in zero-coupon one-year convertible bonds would be used for the firm’s international and cross-border logistics capabilities, as well as research and development of advanced technologies, among others, it said in a stock exchange filing on Thursday.

Its shares fell 4.1 per cent to HK$44.30 in Hong Kong on Thursday after the announcement, while its Shenzhen shares dropped 2.3 per cent to 49.15 yuan.

The transactions represent Shenzhen-based SF’s first offshore fundraising since its initial public offering in Hong Kong in November, which raised HK$5.83 billion and became a bellwether of a recent wave of mainland China-listed firms issuing Hong Kong shares, known as H shares.

SF plans to place 70 million H shares at HK$42.15 each, a discount of about 8.8 per cent to the closing price of HK$46.20 on Wednesday. The additional shares represent around 29.2 per cent of the enlarged H-share capital and about 1.4 per cent of total issued shares.

Meanwhile, the company set the bond conversion price at HK$48.47 per share, a premium of around 4.9 per cent to Wednesday’s closing price. It may issue as many as 60.9 million H shares, or 26.4 per cent of the enlarged H-share capital and about 1.2 per cent of total issued shares, assuming full conversion.