Citing people familiar with the situation, The Wall Street Journal reports (Paid subscription required) that Best Logistics, a China based services provider backed by both Alibaba Group Holdings and Foxconn, is planning to raise $1 billion in an IPO in the United States later this year.
According to the report, this offering could be one of the biggest listings for a Chinese company this year.
We would add, from our Supply Chain Matters lens, that such an offering would be another indicator of the future value that investors would place on an Asian based logistics provider closely linked to Alibaba. According to the WSJ, last year, Best Logistics was valued at $3 billion after raising $700 million from several investors.
Founded in 2007 by a former Google China executive, this logistics provider currently operates a reported 400 logistics centers across China along with three warehouses in the United States and one in Germany. The firm has expanded services to also include Australia, Japan, and Thailand.
Of more interest is the report that Alibaba now holds 22 percent of Best Logistics after multiple investments, while Cainao, the logistics arm of Alibaba has also acquired a reported 5 percent stake. Another current investor is global manufacturing services firm Foxconn.
According to the report, the IPO is being planned in September or October, at the earliest.
This planned event will obviously be one to watch since it would be another indicator of the value investors place in the ongoing growth of online Omni-channel fulfillment and supporting logistics services within China and in adjacent areas of Asia.
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