Chinese express delivery firm Shentong (STO) Express, which claims to deliver one in six parcels in China, has closed a CNY16.9 billion (US$2.6 billion) reverse takeover deal with a Shenzhen-traded valve maker, becoming the first parcel service to be listed, Reuters reports.

Zhejiang IDC Fluid Control Co Ltd said in an exchange filing it would acquire STO Express, raising CNY4.8 billion in a private placement to fund the acquisition and other projects.

An STO Express executive told Reuters in October the company had been planning the back-door listing for years to bypass China's lengthy initial public offering (IPO) process.

Meanwhile, Zhejiang IDC will sell all of its debt and assets to Ultra Linkage Limited. The move allows investors to buy into the fast-growing logistics sector driven by China's booming e-commerce market, led by giant Alibaba.

The express delivery sector grew around 50 per cent a year between 2010-2014 and handled 14 billion parcels last year, State Post Bureau data show. But it has remained elusive for investors due to the dominance of private and state-owned firms.

State-owned China Postal Express & Logistics Co, which bills itself the country's biggest courier, cancelled a planned IPO in 2013 amid a lengthy suspension of market listings by regulators. Rival services YTO Express and SF Express are privately held.