Hong Kong freight forwarder Excel Network files for IPO


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Hong Kong freight forwarder Excel Network has joined a number of companies in the container shipping market by listing publicly on the Hong Kong Stock Exchange.

Founded in 1997 by CEO Wong Tat Shing and Chairman Ramthur Chim, the group incorporated ENL Group Holdings in the Cayman Islands to seek a listing in Hong Kong.

The listing prospectus, filed May 30, did not specify a timeline or fundraising goal for the IPO.

The group started with ocean freight from Hong Kong and expanded to mainland China in 2005, after which it began offering warehousing, logistics, repackaging and palletizing services.

Currently, in China, the group has offices in Shanghai, Shenzhen, Chongqing and Guangzhou.

Excel Network management said a portion of the proceeds from the IPO would go towards expanding its air freight forwarding services, including the acquisition and installation of X-ray equipment from cargo to comply with International Civil Aviation Organization air cargo security standards.

In the fiscal year ended March 31, 2022, Excel Network’s ocean freight volumes doubled year-on-year to 26,926 TEUs and air freight increased 3% to 8 .93 million kg. The company’s net profit tripled to $9.69 million.

The strong growth in Excel Network’s ocean shipment volume is mainly due to the significant increase in orders for apparel and fashion-related products, household products and furniture. There has also been an increase in exports of toys and other consumer goods from China to Europe.

Management also noted the shift from air freight to ocean freight transport due to volatility in freight rates and capacity shortages in the air freight sector.

Buoyed by historically high profits in the container sector, several companies have turned to the stock market to raise funds. Last month, Chinese logistics operator De Well Group applied for a listing on the Hong Kong stock exchange. China United Lines has filed for an IPO in Hong Kong, while TS Lines boss Chen Te-sheng said the company hopes to list in Hong Kong this year.


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