China Tourism Group picks Hong Kong for US$2.5 billion IPO as the world’s largest duty-free retailer raises capital to expand
- The world’s largest duty-free retailer aims to raise up to US$2.5 billion, making it the largest IPO in Hong Kong in 14 months
- The company will start its public offering from Monday to Thursday, to be priced on August 18 before trading commences on August 25
The Beijing-based company is offering 102.76 million shares at between HK$143.50 and HK$165.50 each, according to a term sheet seen by South China Morning Post. That allows it to raise up to US$2.17 billion at the top end of the price range, and as much as US$2.5 billion if an overallotment option is exercised.
To anchor the IPO, the company allocated 39.3 per cent of its IPO shares to nine cornerstone investors for a combined HK$6.24 billion (US$795 million), based on the mid-point of the price range, according to the term sheet.
The China State-Owned Enterprise Mixed Ownership Reform Fund will take up a HK$1.2 billion stake, followed by the South Korean cosmetics producer AmorePacific Group, China’s state shipping firm Cosco Shipping, and Rongshi International, each with HK$785 million block.
Shanghai Airport, liquor distiller Luzhou Laojiao, China Structural Reform Fund, Hainan Free Trade Port Construction Investment Fund and the Los Angeles-based asset manager Oaktree Capital Management are the other cornerstone investors. The allocation comes with a six-month lock-up period.
