IPO Announcement | S.F. Holding (06936) will be accepting applications for its new shares from November 19th to November 22nd, with plans to globally issue 170 million H shares.

S.F. Holding (06936) will conduct an IPO from November 19, 2024, to November 22, 2024. The company plans to globally sell 170 million H shares, with approximately 9.5% in Hong Kong and 90.5% internationally, with an additional 15% over-allotment option. The offering price will be between HK$32.3 and HK$36.3 per share, and the H shares are expected to start trading on the Hong Kong Stock Exchange on November 27, 2024, at 9:00 am with a trading unit of 200 shares per hand. The group has signed cornerstone investment agreements with Oaktree, Huihan, WT Asset Management, China Pacific Insurance, Green Better, Infini, Wind Sabre, Morgan Stanley International, Ghisallo, and Ruixuan Asset Management (collectively referred to as "cornerstone investors"), who have agreed to subscribe or cause their designated entities to subscribe for approximately US$205 million (or approximately HK$1.592 billion) worth of shares at the offering price subject to certain conditions (excluding brokerage commissions, SFC trading fees, Stock Exchange trading fees), rounded down to the nearest integer for a complete trading unit of 200 H shares (cornerstone allocation). Based on an offer price of HK$34.30 per H share (the median of the indicative offer price range in this prospectus), the total number of shares that the cornerstone investors will subscribe to will be 46.4076 million shares. Assuming an offer price of HK$34.30 per H share (the median of the offer price range of HK$32.30 to HK$36.30 per H share), after deducting underwriting commissions and other estimated expenses incurred and payable by the group for the global offering, assuming the over-allotment option is not exercised, the group estimates that the net proceeds from the global offering will be approximately HK$5.661 billion. In line with the group's strategy, the group intends to use the net proceeds from the global offering as follows: Approximately 45.0% of the net proceeds will be used to enhance the group's international and cross-border logistics capabilities, with approximately 20.0% to strengthen and enhance the group's logistics services and network coverage in Asia (especially Southeast Asia). Approximately 20.0% will be used for selective strategic initiatives, including mergers and acquisitions, strategic alliances, joint ventures, or other minority investments. Approximately 5.0% will be used to upgrade the group's intercontinental logistics network and infrastructure; approximately 35.0% of the net proceeds will be used to enhance and optimize the group's logistics network and services in China, with approximately 15.0% to enhance the group's logistics network and infrastructure. Approximately 10.0% will be used for efficiency improvement plans such as reducing and disposing of redundant and inefficient service outlets, further promoting automation of transfer yards, optimizing transport routes to increase load capacity and reduce transit times, and enhancing forecasting and big data analysis technologies to reduce labor costs. Approximately 5.0% will be used to integrate network-related resources to achieve greater network synergies. Approximately 5.0% will be used to expand the breadth and depth of service offerings and further improve the quality of the group's services; approximately 10.0% of the net proceeds will be used for research and development of advanced technologies and digital solutions, upgrading the group's supply chain and logistics services, and implementing ESG-related initiatives, with approximately 8.0% to further promote the digitization of the group's logistics network. Approximately 2.0% will be used for investments in ESG-related projects; approximately 10.0% of the net proceeds will be used as working capital and for general corporate purposes. The group is a leading global integrated logistics service provider, according to a Frost & Sullivan report, based on 2023 revenue, the group is the largest integrated logistics service provider in China and Asia, as well as the fourth largest in the world. As a Fortune Global 500 company, the group holds a leading position in five logistics segments in China and four in Asia, providing customers with a comprehensive range of logistics services, including express delivery, freight transportation, cold chain logistics, same-city instant delivery, supply chain solutions, and international logistics services. The SF brand is widely recognized for its first-class service and has become synonymous with express delivery. In 2024, the group was the only logistics company to be named one of the top five most admired companies in China by Fortune Magazine. As of June 30, 2024, the group's vast global delivery network covers 202 countries and regions, operating 99 aircraft and over 186,000 vehicles, making it the largest air and land transportation fleet in Asia. The group is also a technology-driven company, holding 4,199 patents and patent applications as of June 30, 2024, and continually leveraging self-developed technology to provide innovative solutions and ensure excellent business operations. As of June 30, 2024, the group had approximately 2.2 million active monthly account customers and approximately 699 million individual customers, the highest among all logistics service providers in Asia according to the Frost & Sullivan report. During the past performance period, the group achieved high-quality sustainable growth. The group's revenue increased from RMB 207.2 billion in 2021 to RMB 258.4 billion in 2023, with a compound annual growth rate of 11.7%; the group's revenue also increased from RMB 124.4 billion in the six months ended June 30, 2023, to RMB 134.4 billion in the same period in 2024, an 8.1% growth. In 2021, 2022, and 2023, the group's annual profit attributed to owners of the company was RMB 4.7 billion, RMB 6.2 billion, and RMB 8.2 billion respectively, with a compound annual growth rate of 31.9% since 2021.During the period, the profit also increased by 15.1% from RMB 42 billion in the six months ended June 30, 2023 to RMB 48 billion in the same period of 2024. The group's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased from RMB 218 billion in 2021 to RMB 294 billion in 2023, with a compound annual growth rate of 16.3%. The group's EBITDA also increased by 8.2% from RMB 147 billion in the six months ended June 30, 2023 to RMB 159 billion in the same period of 2024."Bonjour, comment a va aujourd'hui?" "Hello, how are you today?"