eCargo, a China-based e-commerce solution provider for fashion brands, is to list on the ASX, raising $40 million and valuing the company at $224 million.
The business is a service provider to China’s online retailing industry, providing integrated online and offline supply chain solutions.
The target market is the same as Alibaba, the e-commerce platform whose massive $20 billion plus IPO is set to open Friday US time.
eCargo believes it is the only company providing full services to merchants who want to enter the Chinese online consumer market.
eCargo Chairman John Lau is the founder of the international freight forwarding, supply chain and logistics services groups CS Logistics Holdings Limited.
In China, consumer spending is tipped to grow from $2.03 trillion in 2010 to $6.18 trillion in 2016.
John Lau says the company is strategically poised to capitalise on the growth of China’s online retailing and the emerging structural shift in the behaviour of Chinese consumers.
“The explosive growth of eCommerce in China will continue to be underpinned by the combined impacts of the rapid expansion of Chinese ‘Netizens’ for whom online shopping on mobile devices is an increasingly popular pastime, as well as the proliferation of online payment technologies,” he says.
The cash from the IPO will be used to expand operations in China and Hong Kong as well as to capitalise on acquisition opportunities.
eCargo anticipates significant merchant growth will come through existing relationships with leading retail and fashion brands trading in the Chinese market.
The company is already engaged by a number of major fashion merchants to enable the growth of their online businesses in China and Asia.
The IPO is seeking to raise A$40 million through the offer of 100 million CHESS Depository Interests at $0.40 each, equivalent to 100 million shares at $0.40 a share.
The offer opens on October 7 and will close on October 31 with trading expected to start on the ASX on November 18.
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