Chinese delivery firm ZTO Express lists on NYSE

Global Business

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The biggest U.S. initial public offering of the year is Chinese. Shipping firm ZTO Express raised $1.4 billion from its listing-the biggest Chinese IPO since Alibaba. But on the first day of trading its shares fell more than 15 percent from its initial offering price.

CCTV America’s Karina Huber has more.

Chinese delivery firm ZTO Express lists on NYSE

Chinese delivery firm ZTO Express lists on NYSE

The biggest U.S. initial public offering of the year is Chinese. Shipping firm ZTO Express raised $1.4 billion from its listing-the biggest Chinese IPO since Alibaba. But on the first day of trading its shares fell more than 15 percent from its initial offering price. CCTV America’s Karina Huber has more.

Thursday’s opening bell at the New York Stock Exchange marked the first day of trading for ZTO Express. 

In the initial public offering the company sold more than 72 million shares raking in $1.4 billion.

“I am very happy. Getting listed is not the ultimate goal. It’s the tactic and strategy to help the company develop. ZTO Express has only been around for 14 years and there is huge potential to grow,” ZTO Express Founder and Chairman, Lai Meisong said.

Expectations were running high for ZTO’s listing.

On Wednesday the shares were priced above their expected range. But when they began trading on Thursday, the opening price was down almost six percent. By the market’s close the shares were down 15 percent from their IPO price.

Trader Jonathan Corpina said the investment banks underwriting the IPO got the pricing wrong. Nevertheless, he said investor interest is high among those who want access to China’s growing e-commerce market.

ZTO Express reports higher profit margins than either FedEX or UPS. ZTO’s main customer is Alibaba., which accounted for around 77 percent of ZTO’s business last year.