Chinese delivery and logistics giant ZTO Express has announced terms for its IPO. The Shanghai-based company is looking to raise up to $1.3 billion worth of funds from the market. It is likely to be the biggest US IPO for 2016. The logistics firm plans to sell 72.1 million shares in the price bond of $16.50 and $18.50.

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ZTO Express offers its services to various prominent businesses, including Chinese online retail companies JD.com and Alibaba.

Alibaba business accounted for three-quarter of ZTO Express turnover in the first half of 2016. The IPO filing claims that the company dealt with 2.9 billion packages in 2015, registering 62 percent growth over the previous year.

According to an iResearch report, ZTO Express accounted for 14 percent of all express parcels delivered in China during the first quarter of 2016.

The company is looking to use the proceeds from the IPO for developing its infrastructure enhancements, including the purchase of land and equipment. It also plans to own more trucks and boost up its information technology resources.

According to The Wall Street Journal, ZTO Express may have decided to get  listed in the US stock exchange, instead of the Chinese market due to regulatory holdups. Currently, there are over 800 firms waiting to get the approval for their IPOs in the Chinese markets.

ZTO Express was established in 2002. Its reported annual turnover is pegged at $1.2 billion for the period of 12 months, ending June 30, 2016. The company is expected to announce its IPO pricing later this month, as it will trade in the New York Stock Exchange, under the symbol of ZTO, as well.

TagsZTO Express, JD.com, Alibaba