China Postal EMS cancels IPO
China Postal Express and Logistics Co Ltd (EMS) has withdrawn its application for an initial public offering (IPO), according to the company’s announcement at end-December.
January 31, 2014
China Postal Express and Logistics Co Ltd (EMS) has withdrawn its application for an initial public offering (IPO), according to the company’s announcement at end-December. EMS is the biggest integrated express and logistics firm in China by geographical coverage. In a statement released on Friday, EMS said the IPO withdrawal was done to enhance the company’s competitiveness amid the volatile market of express delivery. “EMS has decided to polish the structure of its parent and subsidiaries and achieve a more effective headquarters and management model,” it said.
The IPO proposal by the Beijingbased logistics company, a unit of stateowned China Post Group, had already gotten the go-ahead from the regulator in 2012. Before going public, it needs a final certification from the regulator. However, a year-long IPO hiatus hindered the company from pushing ahead with the IPO. China shut the door to IPOs in the country in November 2012, just before a once-in-a-decade leadership transition, in an effort to support the stock market, analysts said.
In a preliminary prospectus posted on the commission’s website in 2012, China Postal Express & Logistics said it was aiming to sell up to four billion new shares, or 33 per cent of its enlarged capital to raise CNY9.98 billion (US$1.6 billion), ahead of a listing on the Shanghai Stock Exchange. It planned to use the proceeds from the offering to pay for the expansion of its distribution centers and warehousing facilities and for building a data system as well as for purchasing transport facilities, the company said. The logistics firm made a net profit of CNY 901.7 million in 2012, with revenue totaling CNY 25.88 billion.