(Yicai Global) Nov. 17 -- Swiss investment banking giant UBS has become the sixth-biggest shareholder of China’s S.F. Holding, which operates courier SF Express, through a CNY3 billion (USD469.6 million) investment.

The logistics company has completed its CNY20 billion (USD3.1 billion) private placement, the Shenzhen-based firm said in a statement yesterday. The company issued 350 million shares to 22 investors at CNY57.18 (USD9) apiece. Hence, the Zurich-headquartered institutional investor will have a nearly 1.1 percent stake in it.

Two funds under Shanghai-based asset manager Chongyang Strategic Investment invested collectively the most at CNY3.4 billion. Thus, Chongyang Investment's Chongyang Strategic Caizhi Fund will become the ninth-biggest shareholder of the express courier with its 0.8-percent stake in it. Mingde Holdings Development, controlled by S.F. Holding's Chairman and General Manager Wang Wei, remains the biggest shareholder, holding almost 55.1 percent of the shares.

S.F. Holding launched the private placement in May. Some CNY6 billion of the proceeds will be used on delivery equipment upgrades. Some CNY4 billion will be spent on the construction of a civil airport transfer center in Ezhou, Hubei province. The remainder will be put into building a digital supply chain, enhancing land transport capacity, and purchasing and repairing aviation resources.

The logistics company has been having a rough year due to rising costs. S.F. Holding's net profit slumped 68 percent to CNY1.8 billion in the first three quarters from a year ago, mostly caused by increased expenditures on transit sites, automation equipment, as well as main and branch lines' capacity. Meanwhile, revenue climbed 24 percent to CNY135.9 billion (USD21.3 billion), according to the firm's earnings results released in late October.

S.F. Holding's shares [SHE: 002352] fell 0.2 percent to CNY63.27 (USD9.90) in the afternoon.

Editor: Emmi Laine, Xiao Yi