Fast Retailing mulls direct listing in HK
Fast Retailing, owner of the popular Japanese clothing brand, may consider a direct listing if city's exchange adopts paperless trading
Fast Retailing, the parent company of Japanese fashion chain store Uniqlo, will consider listing directly in the city if its Hong Kong depositary receipts (HDRs) are well-received and the exchange could adapt to paperless trading in the future.
The fourth-largest fashion retailer after H&M, Zara and Gap, Fast Retailing is hoping Hong Kong will eventually launch paperless trading because its shares in Tokyo are being dealt on a paperless basis.
The HDRs will begin trading on March 5, with each representing 0.01 share of the company on the Tokyo Stock Exchange.
Pan Ning, the company's group executive vice-president, said China would replace Japan as its largest contributor in sales in five to 10 years.
Uniqlo Japan accounts for nearly 60 per cent of group sales while Uniqlo International, which includes Greater China, South Korea, Southeast Asia, Britain, France and the United States, contributes 22 per cent. The remainder is from other subsidiaries such as GU and J Brand.
The household brand popular in Hong Kong and mainland China has lost its momentum in earnings growth. It projected earnings for the year to August would increase by only 1.8 per cent to 92 billion yen (HK$6.98 billion). The stronger yen was partly blamed for the tepid performance.