(Yicai Global) Oct. 21 -- YTO Express Logistics Co. [SHA:600233], ranked No.1 by deliveries last year, debuted on China's A-share market yesterday, becoming the country's first courier to go public.
Alibaba Group Holding Ltd.-backed YTO Express made a backdoor listing via a reverse merger with garment maker Dalian Dayang Trands Co. earlier in the year. Reverse mergers, or backdoor listing, side-step China's lengthy initial public offering process.
The Shanghai-based company's executive team will change and Chairman and President Yu Huijiao will stay on as president. YTO Express had net profit of CNY717 million (USD106 million) on revenue of almost CNY12.1 billion last year.
Shares of YTO Express dropped 4.3 percent to close at CNY34.56 (USD5.13). They gained as much 1.27 percent in morning trading today.
China's express delivery market is the world's biggest and one of its most competitive. The top-ranked privately owned couriers are very similar in terms of services and network size. They seek to list as early as possible in order to secure funds to finance ambitious plans for expanding market share.
Shentong STO Express Co., ZTO Express Holdings Co., Best Express Co. and Quanfeng Express Co. also plan to go public. Most of them have opted for backdoor listings.