ZTO Express Aims For Largest U.S. IPO Since Alibaba

(RTTNews) - Chinese logistics company ZTO Express is planning one of the biggest initial public offering in the U.S. market this year.

The company plans to raise $1.3 billion USD in its IPO on the New York Stock Exchange. It would also be the biggest IPO by a Chinese company after e-commerce giant Alibaba Group Holding Ltd.'s $25 billion IPO in 2014.

ZTO plans to sell 72.1 million shares at a price between $16.50 and $18.50. ZTO will launch a global roadshow on Monday to sell the deal to investors in the US and Hong Kong.

The Wall Street Journal estimates the IPO could raise over $1.5 billion if an over-allotment option is fully exercised.

According to reports, China is the world's largest logistics market, with about 21 billion parcels being delivered in 2015, which is bigger 1.5 times bigger than the United States.

ZTO, which was founded in 2002, is one of the major package delivery service provider in China. Its customers include e-commerce giant Alibaba and JD.com Inc. ZTO delivered around 14 percent of all parcels in China last year.

ZTO reported revenues of RMB6.1 billion in 2015, up from RMB3.9 billion in 2014. Profit was RMB1.3 billion.