IPO Watch: ZTO Express Debut A Dud

(RTTNews) - Shares of ZTO Express Inc. fell more than 9 percent on its market debut on Thursday after opening at $18.40.

The Shanghai-based package delivery company had priced its 72.1 million shares at $19.50 a share, above its indicated range of $16.50 to $18.50 a share. The company had raised $1.4 billion in the largest U.S. IPO of a Chinese company since e-commerce giant Alibaba Group Holding Ltd.'s $25 billion IPO in 2014.

According to reports, China is the world's largest logistics market, with about 21 billion parcels being delivered in 2015, which is bigger 1.5 times bigger than the United States.

ZTO, which was founded in 2002, is one of the major package delivery service provider in China. Its customers include e-commerce giant Alibaba and JD.com Inc. ZTO delivered around 14 percent of all parcels in China last year. ZTO reported revenues of RMB6.1 billion in 2015, up from RMB3.9 billion in 2014. Profit was RMB1.3 billion.