JAKARTA: J&T Express, an Indonesian courier company, is considering shifting its planned US initial public offering (IPO) to Hong Kong in a debut that could raise about US$1bil (RM4.17bil), according to sources.

       The Jakarta-based company is working with Bank of America Corp, China International Capital Corp and Morgan Stanley on the potential first-time share sale as soon as next year.

       J&T had previously planned to seek a US IPO as soon as the fourth quarter, Bloomberg News reported in April.

       The possible change of venue comes as Chinese regulators have announced scrutiny on its companies listing overseas. Even though J&T is Indonesian, several of its investors are based in China and the logistics firm has significant operations there, which has prompted concern within the company about potential scrutiny from Beijing.

       Preparations for the Hong Kong listing are at an early stage, and details of J&T Express’ IPO plans including size and timeline could still change. The company could decide to list in the United States at a later date, following its offering in Hong Kong, a source said.

       Representatives for Bank of America, CICC, J&T and Morgan Stanley declined to comment.

       Founded in 2015 by entrepreneurs Jet Lee and Tony Chen, J&T Express has operations in Cambodia, China, Indonesia, Malaysia, the Philippines, Thailand, Singapore and Vietnam, according to the company’s website. The courier has more than 350,000 employees globally.

       In China, J&T is known for its aggressive pricing and expansion, challenging rivals like SF Holding Co and Alibaba Group Holding Ltd.-backed YTO Express Group Co.

       In April, the postage authority in Yiwu, a city in Zhejiang province, penalised the startup for selling below cost and ordered it to rectify, local media reported.

       J&T Express would join a number of companies whose plans to list in New York have been thrown in doubt amid brewing US tensions with China. — Bloomberg