Ultra-high-end jewellery maker and retailer Graff Diamonds got Hong Kong stock exchange approval yesterday for a listing worth up to US$1 billion, market sources said.
The initial public offering could be the biggest in Hong Kong by an international issuer so far this year, but details of the issue, including its timing, have yet to be confirmed.
It would also be the biggest IPO in Asia excluding Japan after the US$600 million listing in Thailand of the property fund of Tesco's Thai unit, according to data provided by research firm Dealogic.
Haitong Securities, listed on the Shanghai Stock Exchange, raised US$1.7 billion in a share offering in Hong Kong last month, the biggest new listing so far in the region.
While Hong Kong has had more IPOs this year, they have been smaller. Including Haitong, there have been 24 new listings, which raised a total of US$3.1 billion, so far this year, compared with 18 deals, which raised US$4.5 billion, over the same period last year, according to Dealogic. In Asia excluding Japan, both the number and volume of new listings have dropped. The region has raised US$13.4 billion through 126 deals so far this year, down from US$32.3 billion through 196 deals during the same period last year.
Brokers said the market would be eyeing the Graff IPO with keen interest because of its unique market position. They said the listing would also be a breath of fresh air in a market that does not want to rely too heavily on listings of mainland companies.
Kenny Tang Sing-hing, general manager of AMTD Financial Planning, said investors would be bullish on the stock following the strong performance of Italian luxury brand Prada, which raised HK$16.7 billion in June last year. Prada shares closed yesterday at HK$52.80, comfortably higher than the HK$39.50 offer price.