Chinese package company ZTO Express has raised $1.4 billion in the largest IPO of the year.

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ZTO Express, a Shanghai-based package delivery company has raised $1.4 billion in the largest IPO for the year. The IPO will give the company access to money for expansion and allow its shareholders to exit their investments under US market rules more quickly than under China’s.

Chinese package delivery company ZTO Express has raised $1.4 billion in the largest Initial Public offering (IPO) of the year and the biggest IPO made by a Chinese company since e-commerce Alibaba Group Holding’s $25 billion IPO in 2014. The market debut has earned the company more than $12 billion in market value.

The company’s listing in the United States provided ZTO with a head start in the world’s largest express delivery market compared to its rivals by granting the company access to money for expansion projects. On a similar note ZTO Express intends to use $720 million from its IPO to purchase more trucks, equipment, land and facilities.

In addition the company’s IPO will give ZTO’s existing shareholders, among whom are private equity firm Warburg Pincus, Hillhouse Capital and venture capital firm Sequoia Capital much more flexibility to exit their investments under United States’ market rules when compared to China where they would have to wait from one to three years after the IPO.

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