Six months after Hong Kong saw its first Tech Unicorn IPO, another Tech Unicorn made its debut in the city.
Shares of GogoX, a logistics startup, fell 22% from its initial public offering price in its first day of trading Friday, giving it a market capitalization of $1.3 billion.
GogoX, formerly known as GoGoWan, is listed on the Hong Kong Stock Exchange, which has been used to expand its user base, increase its brand awareness, develop new services and products, and fund logistics-related investments and acquisitions overseas. has raised $85 million for Its IPO follows AI startup SenseTime, which was the first Hong Kong tech unicorn to go public in December 2021.
Founded in 2013 by Steven Lamm, Nick Tang and Reeve Kwan, GogoX operates an on-demand delivery services platform that now has more than 27.6 million shippers and 5.2 million drivers. The company says it operates in more than 340 cities in Hong Kong, mainland China, Singapore, South Korea and India. GogoX reported that revenue rose 25% to 660.9 million yuan (about $100 million) in calendar year 2020, while losses jumped a third to 872.9 million yuan.
Rival logistics startup Llamove is also planning to go public. In July last year, Bloomberg informed of Llamov weighs in on the $1 billion Hong Kong list. According to GogoX’s prospectus, citing research by consulting firm Frost & Sullivan, Llamove has a market share of 18.5% in Hong Kong, while GogoX has about 50.9%. But Llamovo is the market leader in China with a 52.8% share, while GogoX holds about 3.2%.
GogoX, Lalamove and other logistics startups including CALL4VAN and Zeek grew on the basis of Hong Kong’s well-developed transportation network and infrastructure. Hong Kong’s richest man, Li Ka-shing, also has an important logistics business in Hong Kong. From 1999 to 2004, the city’s Kwai Tsing Container Terminal was the busiest port in the world, until it was surpassed by Singapore.
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