(Yicai) Aug. 2 -- Shares of SF Holding, China’s largest express delivery company, fell after it announced plans for a secondary listing in Hong Kong.

After dropping by as much as 2.9 percent in the morning trading session, SF [SHE: 002352] closed 2.1 percent lower at CNY48.73 (USD6.78) a share today. The broader Shenzhen market came off 0.4 percent.

The offering will not exceed 10 percent of SF’s total outstanding shares after the listing, the Shenzhen-based firm said in a statement today. It will give the intermediary agency an over-allotment right of up to 15 percent of the H shares issued, SF said, adding that the sale is expected within 18 months if approved by shareholders on Aug. 17.

Speculation of a secondary listing by SF has abounded for some time. In May, Bloomberg News reported that the firm was preparing to raise between USD2 billion and USD3 billion in Hong Kong, and early last month SF confirmed that it was looking into an equity financing in Hong Kong.

The offering would make SF, set up in 1993 by Wang Wei, the first courier listed both in the Chinese mainland and the Hong Kong Special Administrative Region. It went public on the Shenzhen stock market through a backdoor listing in 2017.

The offering will support SF’s internationalization strategy, establish an offshore financing channel, enhance its global brand image, and improve its overall competitiveness, the firm said.

SF has been exploring the international market in recent years, including spending HKD17.5 billion (USD2.2 billion) to acquire nearly 52 percent of Hong Kong-based Kerry Logistics Network in 2021, laying the foundation for its expansion into the Southeast Asian market.

SF’s net profit soared 45 percent to CNY6.2 billion (USD864.4 million) last year on a 29 percent jump in revenue to CNY267.5 billion (USD37.3 billion), according to its annual earnings report.

Editor: Martin Kadiev