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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.

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