A Celebration of Jewelry and the Business Behind the Beauty
Leibish & Co
Sunday, November 27, 2011
Chow Tai Fook Set to Issue IPO that Could Raise $3 Billion
Hong Kong jewelry retailer Chow Tai Fook is looking to raise nearly $3 billion in an initial public offering that would be one of the largest in Hong Kong this year, according to published reports.
The company will offer 1.05 billion shares at HK$15 to HK$21 each, putting the total deal size at up to HK$22.05 billion ($2.83 billion), Reuters reports. In another report by The Standard in Hong Kong, the IPO could raise HK$23.34 ($2.99 billion). The IPO would value the company at about $27 billion.
The deal would surpass the $2.5 billion IPO by Milan-based Prada SpA in Hong Kong in June. Commodities company Glencore raised nearly $10 billion in a Hong Kong and London dual listing in May, with most of the funds raised in the London portion of the offering, Reuters reports.
Chow Tai Fook, controlled by billionaire New World Development Co. chairman Cheng Yu-tung, has about 1,500 stores, most of them in Greater China. The company also has shops in Singapore, Taiwan and Malaysia. About 80 stores are located in Hong Kong and the gambling center of Macau.
Chow Tai Fook will be shopping the IPO to large investors on Monday, with pricing slated for December 8, Reuters reports. The stock will trade under the symbol “1929,” the year the company was founded.
This blog is for those who are passionate about jewelry and watches and want to learn more about the industry. It's a place to find the best new products from all over the world and the latest news about the business of jewelry, watches and luxury. Readers gain a backstage pass to the glamour, fun and difficulties of the industry.
I am a freelance writer and editor who covers the luxury jewelry and watch industry for several publications, including Forbes.com the Financial Times, Hong Kong-based JewelleryNetAsiaand the Italian jewelry magazine, VO+. In addition, I have my own blog covering the jewelry and watch industry, Jewelry News Network.