Chinese logistics platform GOGOX has submitted an application for an initial public offering (IPO) on the Hong Kong Stock Exchange (HKEx). Its co-sponsors are CICC, UBS, BOCOM International, and ABC International. The floatation will value the company at US$3 billion, and the IPO is expected to raise between US$400 million and US$500 million in funds.
GOGOX, previously known as GoGoVan, merged with fellow Chinese company 58 Express and assumed its current identity in August 2018. The logistics firm is positioned as a car-hailing platform for goods logistics.
The company said in its listing prospectus that it is committed to providing users with short-distance transport of goods and a trading services platform for logistics, relocation and transportation anytime and anywhere. Since its establishment, it has received three rounds of financing.
58 Freight holds a 50.51 percent stake in GOGOX, GoGoVan Cayman 17.58 percent, Taobao China 12.92 percent and Cainiao holds 2.84 percent.
According to the prospectus, the annual revenues of GOGOX from 2018 to 2021 were 453 million yuan, 548 million yuan, 530 million yuan and 660 million yuan respectively; gross profits were 100 million yuan, 173 million yuan, 183 million yuan and 242 million yuan respectively; and finally, losses were 1.071 billion yuan, 184 million yuan, 658 million yuan and 873 million yuan respectively.
GOGOX said that considering the firm’s intra-city logistics business is still in its initial stages, the company has invested significantly in promoting growth. Taking into account this business investment plan, GOGOX expected losses until 2024 at the earliest.
Moreover, from April 2021 to March 2022, GOGOX faced scrutiny six separate times by China’s Ministry of Transport Communications, the Shanghai Municipal Transportation Commission, and other government departments, mainly regarding issues of public safety, the protection of drivers’ rights and interests and others.
GOGOX now operates in more than 340 cities in five Asian countries and regions. The platform has about 4.5 million registered drivers, and about 24.8 million registered users and has served more than 33,000 enterprises.
As of the end of 2018-2021, GOGOX had about 14.5 million, 19.8 million, 24 million and 27.6 million registered consignors and 1.3 million, 3 million, 4.2 million and 5.2 million registered drivers respectively.
According to Frost & Sullivan, GOGOX ranked third in the intra-city logistics market in the Chinese mainland, with a market share of 3.2 percent. Huolala occupied the largest market share, accounting for 52.8 percent, while DiDi Freight accounted for 5.5 percent. In Hong Kong, GOGOX accounted for about half of the market share.