China is scheduled for the first public offering (IPO) in Hong Kong, raising approximately US $ 2 billion (below, about S $ 2.742 billion).The company returned to the Hong Kong market after abandoning the IPO at the end of last year.
This target issuance has been greatly reduced compared to the company's previously planned financing scale, but it seems that it is expected to become the largest IPO in Hong Kong so far this year.
According to the sales document clauses seen by the Wall Street Journal, this Chinese state -owned tourism retailer, which is already listed in Shanghai, is seeking to raise 1.88 billion to 2.17 billion US dollars through the Hong Kong IPO.This is lower than the company's 7 billion to 10 billion U.S. dollar stock issued by the company last year.Later, the company gave up the plan in December last year.
The Wall Street Journal reports that the reduction of the distribution scale reflects the difficult market environment.The Hong Kong benchmark Hang Seng Index has fallen 14%this year, and has hit five years in March earlier.According to DEALOGIC's data, so far in 2022, the IPO issuance scale of this Asian financial center totaled 4.93 billion US dollars, far lower than US $ 34.79 billion in the same period last year.
The report quoted people familiar with the matter and revealed that this market conditions have prompted China to avoid the distribution scale that can better reflect market demand.The company's goal is to complete the largest listing transaction in Hong Kong during the year, surpassing US $ 1.7 billion raised by China Lithium Corporation Tianqi Lithium Industry last month.
The relevant provisions of the listing of this listing in Hong Kong means that China ’s free market value is about 57 billion U.S. dollars.
China is not established in 1984 and operated 193 stores, mainly located in the airport, cruise ship and urban central area.
Recently released financial reports in China showed that in the first half of 2022, profit decreased by 26%to about $ 583.8 million, partly due to strict epidemic prevention measures implemented in China.Long -term sealing.China -free revenue fell by 22%in the first half of the year to about $ 4.1 billion.
Recently, a round of epidemic in Sanya, a seaside resort in Hainan Island, led to a round of control this month; China has a large duty -free city in China.China ’s stocks have fallen 11%this year.
China -Enterprise Giant China Tourism Group is the controlling shareholder of China Exemption.The terms of the sales documents show that China is exempted from 143.50 to 165.50 Hong Kong dollars (about S $ 25.1 to S $ 29) per share, which will be sold at 102.8 million H shares at a price of about 18.29 to US $ 21.10.According to the terms of the sales documents, China is exempted from nearly half of the issuance income to support the company's domestic business in China.
China has introduced nine cornerstone investors, and the latter promised to subscribe for a total of $ 795 million in stocks in the IPO and holding the shares for at least six months.Seven of them are Chinese state -owned enterprises.The Korean cosmetics company Amore Pacific plans to invest 100 million US dollars, while the US investment company Oaktree Capital Management LP intends to subscribe for $ 40 million in stocks.
China is avoided in China, which also includes a green shoes option, allowing underwriting to sell more stocks when demand is strong.This may push the scale of this transaction to a slightly lower than 2.5 billion US dollars.
The Wall Street Journal quoted a person familiar with the matter and revealed that the relevant investment banks have begun to accept investors' subscription on Friday (August 12), and this offering has been fully subscribed.The terms of the sales documents show that China is expected to be priced at the IPO on August 18, and the stock will start transactions in Hong Kong a week later.
