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Samsonite hopes to raise HK$11.75b from local IPO

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Amanda Lee

Luggage maker Samsonite International is poised to become the latest overseas company to list in Hong Kong, hoping to raise HK$11.75 billion in an initial public offering.

The US-based firm held an investor presentation yesterday ahead of its expected June 16 listing and, according to a pre-listing document posted on the Hong Kong stock exchange, Asia was the most profitable region for Samsonite last year.

Samsonite's net sales in Asia rose 45.1 per cent last year from 2009, constituting a third of its total sales last year.

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China, India and South Korea were among the top five markets in Asia last year for Samsonite, which started life in 1910 as a trunk manufacturer in the US state of Colorado.

The retail operation of Samsonite, majority owned by London-based private equity firm CVC Capital partners following a US$1.7 billion acquisition in 2007, suffered in the financial crisis in 2008. It made a net loss of US$1.42 billion for the year to December 31 2008, blaming the economic downturn for discouraging travelling.

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In the pre-listing document, its subsidiary Samsonite Stores Company in 2009 filed a voluntary petition under Chapter 11, the key business reorganisation chapter of the US bankruptcy code, so it could sell some underperforming retail leases.

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