Prada and Samsonite are seeking to raise more than $4 bn in Hong Kong initial public offerings in June
Prada has began the bookbuilding for its Hong Kong listing as luxury brands seek to take advantage of interest among Chinese investors in the sector.
The Italian fashion house has set an indicative price for each share of HK$36.50-HK$48 ($4.7-$6.2), according to a report from Dow Jones, citing a person familiar with the situation.
At this price range, Prada would bring in somewhere between $2 bn-$2.6 bn.
The IPO is planned to launch on June 14, the source says.
Samsonite is also planning to list in Hong Kong in June, in what will be a big month for luxury brands on the Chinese exchange.
The US luggage maker announced its pricing last week and hopes to raise up to $1.5 bn.
Interest in a Hong Kong listing by luxury brands has been strong since French cosmetics group L’Occitane raised $707 mn in an IPO in the city last year.
L’Occitane’s Hong Kong share offering was oversubscribed by approximately 158 times, according to a statement from the company at the time.
The listings by upmarket retailers reflect the strong demand for luxury goods in China, driven by the country’s burgeoning middle class.
The OTCQX® marketplace offers the best-informed and most efficient trading of US and global companies. To qualify for the OTCQX marketplace, companies must meet high financial standards, be current in their disclosure and be sponsored by a professional third-party adviser. Designed for the largest and most liquid shareholder-friendly companies, OTCQX ensures investors have the information necessary to intelligently analyze, value and trade their securities.
To learn more, visit us at www.otcmarkets.com.
Please take a moment to read an opinion piece on dividend taxation and the debt bias from OTC Markets Group’s president and CEO, R Cromwell Coulson. Just published on Forbes.com, the column discusses how the US tax code currently favors interest payments on debt over dividend payments to shareholders and possible changes in the US dividend tax rate could make it significantly worse. It also explains why removing the debt bias from our US tax policy will promote growth and a strong economy, and will allow profitable companies to return excess capital to their shareholders. To learn more about OTC Markets Group, visit our website: www.otcmarkets.com.
To view this report, please click here.