China Returns to U.S. IPO Market in Big Way With ZTO Express
- Delivery company’s $1.4 billion sale biggest in U.S. this year
- More than 800 are on waiting list to go public in China
ZTO Express Shares Fall After Largest U.S. IPO of 2016
ZTO Express Inc., the Chinese delivery service that gets about three-quarters of its business from Alibaba Group Holding Ltd., is following its top customer to the U.S. stock market with this year’s biggest initial public offering.
The company’s $1.4 billion share sale is the most a Chinese company raised in New York since Alibaba’s record $25 billion offering in 2014. The deal may mark an inflection point after a string of mainland companies have sought to abandon their U.S. listings and move trading back home, where stocks are commanding higher multiples. It will also test U.S. investor demand at a time when others are going public through reverse mergers, or backdoor listings, on the Shenzhen exchange.