On Tuesday, Best Inc, Alibaba Group-backed Chinese logistics firm, cut its expected price range of IPO just one day before its market debut after tepid response.
Best Inc was founded by Johnny Chou, which was the former Google executive. Alibaba, the Chinese e-commerce company, holds 23.4% stake in the company.
Best Inc previous expected its price range of $13 to $15 per ADS. The IPO is expected to include 53.56 million new shares and 8.54 million existing shares. After the tepid response, the company now expects its IPO to be in the price range of $10 to $11 per ADS, and will sell 45 million shares.
The company is faced with competition from large logistics firms such as S.F. Holding, YTO Express, and STO Express. According to Reuters, concerns about labor costs, spiking fuel and competition led to the tepid response of some investors.
However, even after reducing the size and price, Best would still be the largest listing from a Chinese company to list in the United States so far in 2017.
The IPO of Best Inc is being led by Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs and JPMorgan. Best Inc and Alibaba declined to comment.