Post by hurricanemaxi on Nov 28, 2011 2:31:55 GMT -6
Chow Tai Fook Jewellery Group Ltd. may raise as much as HK$22 billion ($2.8 billion) in what could be Hong Kong’s biggest initial public offering this year as luxury-goods companies tap growing affluence in China.
The retailer, controlled by real-estate billionaire Cheng Yu-tung, is offering 1.05 billion new shares at HK$15 to HK$21 each, according to a term sheet sent to investors. Chow Tai Fook plans to start trading Dec. 15, according to the terms.
The offering by the Hong Kong-based jeweler with more than 1,400 outlets in China will test investors’ appetite after Prada SpA, which raised $2.1 billion in Hong Kong’s biggest IPO this year, declined since its June debut. Sales of luxury items in China will more than double to about 180 billion yuan ($28 billion) in 2015 from last year, McKinsey & Co estimates.
“At such a pricing range, it is more expensive than its peers, but Chow Tai Fook is much bigger,” said Patrick Yiu, managing director at Cash Asset Management. “The price range still looks reasonable.”
Chow Tai Fook, founded in 1929 in the southern Chinese city of Guangzhou, forecast net income of more than HK$6.3 billion in the year ending March 31, 2012, according to a statement from the company to Hong Kong’s stock exchange today. Earnings per share on a pro forma basis will be at least 63 Hong Kong cents, it said.
Fortune, Prosperity
The company was named after founder Chow Chi Yuen and “Tai Fook” means fortune, prosperity and luck in Chinese.
Retail sales in China have grown an average of 17 percent in the first ten months of this year, according to data compiled by Bloomberg. In Hong Kong, Chinese visitors splurging on high- end shoes, watches and jewelry have driven monthly retail sales to record highs.
Graff Diamonds Ltd., the jewelry retailer whose founder twice set records buying gems at auction, is preparing to raise $1 billion in a Hong Kong IPO next year, according to a person familiar with the matter.
Baoxin Auto Group Ltd., a dealer of luxury cars including Tata Motors Ltd.’s Jaguar in China, is seeking as much as $526 million in a Hong Kong share sale, with the stock expected to start trading on Dec. 14, according to a term sheet. The Shanghai-based company forecast this year’s profit to nearly double to 600 million yuan, according to a filing.
Use of Proceeds
The Chow Tai Fook shares being offered will account for 10.5 percent of the company after the sale, according to the term sheet. The company’s stockholders have the option to sell 210 million shares under an upsize option, as well as the equivalent of 15 percent of the final deal size under an overallotment option, according to the document.
Half of the funds raised by the company will be used on raw materials and inventory, with 36.5 percent for repayment of loans and 5 percent on buying properties and renovating stores, according the term sheet. The remainder will be used to buy production as well as research and development equipment, to build an office building in Shenzhen, and on working capital.
The IPO will be the biggest in Hong Kong this year, exceeding Prada’s if priced at the top of the range.
cool website designs
liothyronine sodium
The retailer, controlled by real-estate billionaire Cheng Yu-tung, is offering 1.05 billion new shares at HK$15 to HK$21 each, according to a term sheet sent to investors. Chow Tai Fook plans to start trading Dec. 15, according to the terms.
The offering by the Hong Kong-based jeweler with more than 1,400 outlets in China will test investors’ appetite after Prada SpA, which raised $2.1 billion in Hong Kong’s biggest IPO this year, declined since its June debut. Sales of luxury items in China will more than double to about 180 billion yuan ($28 billion) in 2015 from last year, McKinsey & Co estimates.
“At such a pricing range, it is more expensive than its peers, but Chow Tai Fook is much bigger,” said Patrick Yiu, managing director at Cash Asset Management. “The price range still looks reasonable.”
Chow Tai Fook, founded in 1929 in the southern Chinese city of Guangzhou, forecast net income of more than HK$6.3 billion in the year ending March 31, 2012, according to a statement from the company to Hong Kong’s stock exchange today. Earnings per share on a pro forma basis will be at least 63 Hong Kong cents, it said.
Fortune, Prosperity
The company was named after founder Chow Chi Yuen and “Tai Fook” means fortune, prosperity and luck in Chinese.
Retail sales in China have grown an average of 17 percent in the first ten months of this year, according to data compiled by Bloomberg. In Hong Kong, Chinese visitors splurging on high- end shoes, watches and jewelry have driven monthly retail sales to record highs.
Graff Diamonds Ltd., the jewelry retailer whose founder twice set records buying gems at auction, is preparing to raise $1 billion in a Hong Kong IPO next year, according to a person familiar with the matter.
Baoxin Auto Group Ltd., a dealer of luxury cars including Tata Motors Ltd.’s Jaguar in China, is seeking as much as $526 million in a Hong Kong share sale, with the stock expected to start trading on Dec. 14, according to a term sheet. The Shanghai-based company forecast this year’s profit to nearly double to 600 million yuan, according to a filing.
Use of Proceeds
The Chow Tai Fook shares being offered will account for 10.5 percent of the company after the sale, according to the term sheet. The company’s stockholders have the option to sell 210 million shares under an upsize option, as well as the equivalent of 15 percent of the final deal size under an overallotment option, according to the document.
Half of the funds raised by the company will be used on raw materials and inventory, with 36.5 percent for repayment of loans and 5 percent on buying properties and renovating stores, according the term sheet. The remainder will be used to buy production as well as research and development equipment, to build an office building in Shenzhen, and on working capital.
The IPO will be the biggest in Hong Kong this year, exceeding Prada’s if priced at the top of the range.
cool website designs
liothyronine sodium