Jeweler set for IPO of US$3b in Hong Kong
Source: Bloomberg News |
December 5, 2011, Monday
|
Print Edition
Print Edition
CHOW Tai Fook Jewellery Group Ltd, controlled by real-estate billionaire Cheng Yu-tung, aims to raise as much as HK$22 billion (US$2.8 billion) in what may be Hong Kong's biggest initial public offering this year as luxury-goods companies tap growing affluence on the Chinese mainland.
The Hong Kong-based jewelry chain, with revenue greater than Tiffany & Co, set a price range of between HK$15 and HK$21 each for the 1.05 billion new shares on sale, according to a prospectus released yesterday. The stock is to start trading on December 15.
The offering will test investors' appetite after shares of Prada SpA, which raised US$2.5 billion in Hong Kong's biggest IPO so far this year, declined since debuting in June. Sales of luxury items on the mainland will more than double from last year to about 180 billion yuan (US$28 billion) in 2015, McKinsey & Co estimates.
Companies have raised more than US$15 billion from IPOs so far this year, compared with US$46.3 billion for the same period last year, data compiled by Bloomberg News show.
Chow Tai Fook, with over 1,400 mainland outlets, forecasts net income of more than HK$6.3 billion in the year ending March 31, according to a statement to Hong Kong's stock exchange earlier. Earnings per-share on a pro forma basis will be at least 63 Hong Kong cents, it said.
Founded in 1929 in Guangzhou, the company was named after founder Chow Chi Yuen. "Tai Fook" means fortune, prosperity and luck in Chinese.
Retail sales in the mainland have grown an average of 17 percent in the first 10 months of this year, according to data compiled by Bloomberg News. In Hong Kong, mainland visitors splurging on high-end shoes, watches and jewelry have driven monthly retail sales to record highs.
The Hong Kong-based jewelry chain, with revenue greater than Tiffany & Co, set a price range of between HK$15 and HK$21 each for the 1.05 billion new shares on sale, according to a prospectus released yesterday. The stock is to start trading on December 15.
The offering will test investors' appetite after shares of Prada SpA, which raised US$2.5 billion in Hong Kong's biggest IPO so far this year, declined since debuting in June. Sales of luxury items on the mainland will more than double from last year to about 180 billion yuan (US$28 billion) in 2015, McKinsey & Co estimates.
Companies have raised more than US$15 billion from IPOs so far this year, compared with US$46.3 billion for the same period last year, data compiled by Bloomberg News show.
Chow Tai Fook, with over 1,400 mainland outlets, forecasts net income of more than HK$6.3 billion in the year ending March 31, according to a statement to Hong Kong's stock exchange earlier. Earnings per-share on a pro forma basis will be at least 63 Hong Kong cents, it said.
Founded in 1929 in Guangzhou, the company was named after founder Chow Chi Yuen. "Tai Fook" means fortune, prosperity and luck in Chinese.
Retail sales in the mainland have grown an average of 17 percent in the first 10 months of this year, according to data compiled by Bloomberg News. In Hong Kong, mainland visitors splurging on high-end shoes, watches and jewelry have driven monthly retail sales to record highs.
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