SF Express Rushes to Cash Out Via Backdoor Listing

Nikkei: SF Express takes shortcut via 'backdoor' Shenzhen listing
China's delivery giant SF Express is seeking to list via a 43.3 billion yuan ($6.6 billion) reverse takeover, the latest of several logistics companies to attract public funds through the controversial method of backdoor listings.

SF's parent plans to merge with Shenzhen-listed Maanshan Dingtai Rare Earth and New Materials through an asset swap, and use it as a shell company to list on the local bourse. The little-known Dingtai Rare said in a filing on Monday that it plans to raise up to 8 billion yuan in a private placement of shares with private investors to finance an upgrade of its logistics and infrastructure.

...Nonetheless, industry watchers say SF's rush to list on the mainland bourse is more an attempt to raise funds amid a more challenging environment -- competition in China's courier industry is intensifying and profit margins are increasingly squeezed. Its net profit rose 80% to 1.97 billion yuan last year, but was barely an increase from 2013, when net profit was 1.96 billion yuan.
In the Economic Observer this rationale is refuted by economist Zhang Chao:
SF at this time decided to go public with the intention not of financing, but to cash out.

For two reasons: First, now there are many ways of financing, stocks, bonds, bank loans, PE, VC and so on. If, as the wind such enterprises to financing, he is likely to choose bonds or bank loans that do not split its equity financing in order to protect its future earnings.

Second, the stock market as a whole is not good now, backdoor listing using this approach is clearly worthwhile. So why choose this point in time of using stock to finance? The conclusion is that he is probably not in a hurry to finance, but in a rush to cash out.
He still sees a positive future for the company:
SF Why can cash at this time, which we do not know the reason. But in the express delivery companies in the market outlook is still good SF is certain.

The reasons are the following two points:

1) SF has successfully completed the company's own network of provinces and cities, its own in the management of the SF competitors have joined the system is difficult to match the advantages, so as to provide better service. In addition, unlike its competitors in the establishment of storage and other plans still need to consider a phased buyout franchisees and other uncontrollable circumstances, SF can be directly under the current local distribution optimized layout, to obtain first-mover advantage in the competition.

2) SF have differential advantage in the express delivery industry, at present, among the leading courier, SF only provides cold chain and transportation of drugs by the two services, the role of the vaccine virus in the first period, that the medical transportation will be the future market and one of the key directions of the government concerned, there is a big upside. The cold chain is after rising incomes in China increased emphasis on food safety is also based in the state promising.
EO: 说好不上市的顺丰上市了 真的是为了融资吗?

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