My thoughts with the Alibaba ownership from Big Jack and the former GOOGLE/Alphabet China ceo running the show im starting to think this could mimic a BABA type move 1 day. I like it for a buy, park, and hold for fruition over coming months and years. Seems to be stable around here too. My guess is they have big plans in store. But then again China..how will their economy be moving forward as well being in a decade long bull market like we have been. Will see what happens. Will be watching closely and go from there. GL if you are in.
Best, which is backed by Alibaba Group (BABA.N), priced 45 million American depository shares (ADS) at $10 each, the bottom of a $10 to $11 indicative range, Thomson Reuters publication IFR said on Wednesday, citing people familiar with the deal.
Best declined to comment on the IPO pricing when contacted by Reuters.
The company had initially expected a price range of $13 to $15 per ADS and an IPO consisting of 53.56 million new shares and 8.54 million existing shares.
The revised IPO one day before its market debut suggested weak investor enthusiasm for the original terms. The slump in ZTO’s share price also prompted some investors to balk at Best’s initial pricing, a person close to the deal told Reuters.
Best, founded by former Google executive Johnny Chou, faces stiff competition from Chinese logistics firms such as S.F. Holding (002352.SZ), YTO Express (600233.SS) and STO Express (002468.SZ), all of which recently went public in China, the world’s biggest logistics market.
Best was banking on China’s booming logistics market to justify its valuation, but concerns over competition, along with rising fuel and labour costs prompted some investors to balk at Best’s initial pricing.
Best reported a net loss of 623.8 million yuan ($94.9 million) for the six months ended June 30. Total revenue rose 133.5 percent to 8.10 billion yuan, driven by its freight and express delivery business.
Chinese e-commerce company Alibaba, led by Jack Ma, holds a 23.4 percent stake in Best.
