SHANGHAI (Reuters) - Shares of Chinese express delivery firm SF Holding 002352.SZ shot up 10 percent on Tuesday, after it announced strong profit growth and completed a backdoor listing last week, ranking owner Wang Wei fourth among the country’s richest individuals.
The giant Chinese courier added the final touches to its backdoor listing on Friday after reporting strong preliminary 2016 net profit, which it said jumped 280 percent, fueled by rapid industry growth.
SF Holding struck a $6.6-billion deal last year with little-known metals firm Maanshan Dingtai Rare Earth & New Materials Ltd, effectively allowing the courier to bypass a waiting list for a formal initial public offer.
The firm, which formally changed its name to SF Holding Co Ltd from Maanshan Dingtai on Friday, used an asset swap and new share deal with the metals firm in a bid to help it attract investors as it eyes expansion overseas.
Amid China’s e-commerce boom, logistics is a key growth sector, which has spurred similar listing efforts by smaller firms YTO Express and STO Express.
SF Holding’s shares, which have now rocketed close to 70 percent over the past six trading sessions, rank owner Wang as China’s fourth richest man, with a wealth of $18.5 billion, the Forbes China Rich List shows.
Reporting by Adam Jourdan; Editing by Clarence Fernandez