As mainland retail sector grows, companies look to raise HK$7.3b
Companies in the mainland's booming retail sector, from supermarket operators to clothes producers, are increasingly tapping overseas equity markets to build reserves for expansion and prepare for tougher competition.
New World Department Store China, sportswear maker Anta Sports Products, paper maker Vinda International and supermarket operator Jiangsu Times Supermarket are among consumer companies preparing to list on the Hong Kong market and could raise as much as HK$7.28 billion.
Mainland consumers are spending more on clothes, electronics and cars as salaries increase. The mainland reported retail sales growth for last month of 15.9 per cent, from 15.5 per cent growth in April.
'The robust growth of retail sales is a sign of strong fundamentals in domestic demand driven by the booming stock market and strong money inflows,' said a portfolio manager at a European asset management company.
New World Department Store, controlled by Hong Kong-listed New World Development, is selling 406 million new shares at an offer price of between HK$4.80 and HK$5.80 per share, to raise up to HK$2.3 billion.
