State-owned express courier company China Postal Express and Logistics Co Ltd announced that it has withdrawn its application to go public due to strong competition in the domestic market. The company is facing strong competition in the 198 billion yuan express delivery market.
The company released a statement which said that the state-backed firm – which is known as EMS – cited strategic adjustment issues as the biggest reason behind the IPO pullout. The statement from the company also added that the move has a goal to improve its competitiveness in light of the dramatic changes happening in the express delivery market of China.
EMS is planning to capitalize its business following the completion of the restructuring process. EMS was founded in 2010 and was the result of a merger by the China Post Group and provincial postal companies. The company announced on its website that it has the widest coverage all over the country and the richest product portfolio.
EMS filed an application in August 2011 to be listed on the A-share market and managed to win the regulatory approval in May 2012, but the attempts to float shares were stopped by the end of 2012. On the other hand, the withdrawal of the IPO plans is an unwelcome hit to the courier, which is now slipping behind its main competitors.
Photo Credits: NY TIMES
