Lewis Tse Pui Lung – stock.adobe.com
According to Hong Kong Stock Exchange (HKEX), the intra-city logistics platform GOGOX (known as Kuaigou Dache in China’s Mainland) submitted an application on 24 April for a public listing on HKEX. The co-sponsors of the company are CICC, UBS, BOCOM International, and ABC International.
HKEX estimated that the company valuation is about $3 billion, and the fundraising is expected to reach between $400 million and $500 million in total.
Why it matters
The firm’s prospectus claims that from 2018 to 2021, the annual revenues of GOGOX were respectively 453 million yuan ($69.16 million), 548 million yuan ($83.66 million), 530 million yuan ($80.91 million), and 660 million yuan ($100.76 million); its gross profits were respectively 100 million yuan ($15.27 million), 173 million yuan ($26.41 million), 183 million yuan ($27.94 million), and 242 million yuan ($36.94 million); and its losses were respectively 1.071 billion yuan ($163 million), 184 million yuan ($28.09 million), 658 million yuan ($100.45 million), and 873 million yuan ($133.27 million).
The company’s prospectus also shows that its 58 Freight holds 50.51% of the shares, while GoGoVan Cayman holds 17.58%, Taobao China holds 12.92%, and Cainiao holds 2.84%.
GOGOX is currently operating in more than 340 cities in five Asian countries and regions, including Singapore, South Korea, and India. The platform so far has involved about 4.5 million registered drivers and around 24.8 million registered users.
According to Frost & Sullivan, GOGOX is the largest intra-city logistics company in Hong Kong, accounting for around half of the market share. In China’ Mainland, GOGOX is the third-largest intra-city freight services provider, with a market share of 3.2%. It ranks after Huolala and DiDi Freight, which account for 52.8% and 5.5% of the market share respectively.