What investors should know about BingEx’s IPO

Chinese courier firm BingEx Limited (NASDAQ:FLX) priced its IPO offering of 4 million shares at $16.50, which was on the high end of the expected range of $15 to $17. Underwriters have the option to sell as many as 4.6 million shares in the IPO. The pricing gave the company a valuation of $1.17 billion.

BingEx (FLX) noted in its SEC filing that is the largest independent on-demand dedicated courier service provider in China as measured by revenue in 2023. BingEx (FLX), known for its FlashEx branded courier services, started its operations in China in 2014. The company has expanded its service coverage to 295 cities in China. BingEx (FLX) is noted to have differentiated itself from competitors by taking a unique approach to its business model. Instead of focusing on lowering costs as operations scaled up, the company prioritized service quality to meet consumers’ speed and security needs.

SEC filing: “Since the inception of our commercial operation in 2014, our business has flourished with individual and business customers embracing the on-demand dedicated courier industry. As of June 30, 2024, we had approximately 2.7 million registered riders, and had expanded our services coverage to 295 cities in China. In 2023, our market share of the independent on-demand dedicated courier service in China was approximately 33.9%, according to iResearch.”

BingEx posted revenue of 4.53 billion Chinese yuan in 2023 and a profit of 110.5 million Chinese yuan after recording a loss in 2022.

Sector watch: The major Chinese logistics companies include Alibaba’s (BABA) Cainiao Network, SF Express, JD.com’s (JD) JD Logistics, and ZTO Express (ZTO).

IPO market: The BingEx (FLX) IPO is the first major public launch of a Chinese company since ZEEKR Intelligent (ZK) last May and will be closely watched to see how investors react.