SF Holding Co, the Chinese mainland’s biggest express-delivery firm, is considering raising as much as about $1 billion via a convertible bond offering in the Hong Kong Special Administrative Region that may come alongside a follow-on share placement, according to people familiar with the matter.
The company, listed in both the HKSAR and Shenzhen, has been in talks with advisers for the possible transactions, the people said, asking not to be identified because the information is private. The convertible notes are likely to carry a tenor of around one year, the people said.
Discussions are still ongoing and details may change, they added. SF Holding didn’t offer a comment despite multiple requests.
A part of the proceeds from the planned issuance will likely be used to refinance SF Holding’s HK$2.95 billion ($377 million) zero-coupon convertible bonds, which were priced in late June last year, and are maturing this July, the people said.
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Should the offering go ahead, SF would join a growing list of mainland companies issuing bonds that can be converted into shares. Convertible bonds have emerged as a popular fundraising option over the past two years, as companies have sought to take advantage of lower borrowing costs and improved equity market conditions.
Mainland firms raised a record $70.7 billion from convertible and exchangeable notes last year, with Alibaba Group Holding Ltd, China Pacific Insurance Group Co and Ping An Insurance Group Co of China Ltd among some of the major issuers, data compiled by Bloomberg show.
SF Holding, which was listed in the HKSAR in November 2024, is estimated to have raised around $753 million through convertible bonds and a concurrent H-share placement last June in part to help strengthen its international and cross-border logistics capabilities. The stock is up about 3 percent since the listing.
The company is scheduled to report first-quarter 2026 results on April 28. For 2025, revenue climbed 8.4 percent year-on-year to 308.2 billion yuan ($45.2 billion), while profit rose nearly 10 percent to 11.1 billion yuan, according its annual report.
