SF Airlines (O3, Shenzhen) parent has revised its plans to go public and is now pursuing a reverse-takeover of an existing listed firm as opposed to a virgin IPO as originally planned.

The Wall Street Journal reports the Chinese logistics firm is planning to merge with the Maanshan Dingtai Rare Earth & New Materials Co. in a complex transaction that involves asset swaps and new share issuance. The combined company will have a value of CNY43.3 billion (USD6.61 billion), a filing with the Shenzhen bourse said.

The move mirrors similar efforts by rival firms YTO Express (parent to YTO Cargo Airlines (YG, Hangzhou)) and STO Express to also list through backdoor means. STO Express is planning to take over Taizhou-based automotive firm, Zhejiang IDC Fluid Control, for CNY16 billion (USD2.44 billion) while YTO is planning a CNY17.5 billion (USD2.67 billion) takeover of Shanghai-listed garment firm, Dayang Group.

Chinese firms are increasingly pursuing mergers with listed firms owing to delays in official approval procedures. At present, the backlog of applicants for A-share listings is estimated at 800.