Hong Kong-listed logistics company Kerry Logistics does not rule out the possibility of a future secondary listing on the Singapore Exchange. The group will strengthen its operations in Singapore by expanding its operational scale, increasing its fleet of trucks, and continuously looking for acquisition targets.
According to a report by the Straits Times, Kerry Logistics Chairman Yang Rongwen stated during a meeting with reporters in Singapore yesterday that the company, being based in Hong Kong and deriving most of its business from Hong Kong, naturally chose Hong Kong when it initiated its listing plan last year and had not considered listing in Singapore.
He revealed that the Singapore Exchange had at that time extended an invitation to the company to consider a simultaneous secondary listing on the exchange.
“At that time, we hoped to complete the listing before the revised listing rules in Hong Kong took effect, but due to the relatively tight timeline, it was difficult for us to pursue a secondary listing simultaneously.”
Nevertheless, Yang Rongwen stated that Singapore is a major logistics hub in Asia and that there are many listed logistics companies in Singapore, demonstrating the robust capital market for logistics in Singapore. Therefore, he does not rule out the possibility of Kerry Logistics pursuing a secondary listing in Singapore in the future.
“We have an open attitude toward listing in Singapore, but this would be a longer-term plan and would not happen this year.”
Yang Rongwen previously served as Singapore’s Minister for Foreign Affairs and joined Kerry Group, headed by Malaysian 'Sugar King' Robert Kuok, as Vice Chairman in early 2012. He became Chairman of Kerry Logistics in August of the same year, responsible for the development of logistics and supply chain business under the group.
Last year, Kerry Logistics spun off from Kerry Properties to become an independent listed company, raising HKD 2.2 billion, making it the largest local enterprise by market capitalization in Hong Kong last year.
Kerry Logistics just announced its full-year results for 2013 last week, reporting a 3.5% increase in revenue to HKD 19.969 billion, with a net profit of HKD 1.835 billion. The primary logistics business comes from the Greater China region, accounting for nearly 70% of revenue, while the South Asia and Southeast Asia businesses grew by 14.3% last year, becoming another important development area for the group.
Currently, the group has established a regional headquarters and logistics hub in Singapore, covering an area of 371,000 square feet, providing comprehensive logistics services for clients including apparel and electronic goods.
