Sun Art Retail Group, the Chinese hypermarket operator backed by France’s Groupe Auchan SA, plans to raise as much as HK$8.2 billion ($1.37 billion) in a Hong Kong initial public offering.
The Shanghai-based company is selling 1.14 billion new shares for HK$5.65 to HK$7.20 each, according to a sales document obtained yesterday by Bloomberg News. About half the stock will go to nine so-called cornerstone investors, including Government of Singapore Investment Corp. and Tiger Global Management LLC, which agreed to invest US$40 million each.
Sun Art is pressing ahead with its Hong Kong IPO shortly after the city’s benchmark Hang Seng Index had five straight weeks of losses, the longest stretch in 2 1/2 years. Only four of the 17 companies that started trading this year after raising more than US$100 million in a Hong Kong IPO have risen from their offer prices as of yesterday, according to data compiled by Bloomberg.
The Shanghai-based company is selling 1.14 billion new shares for HK$5.65 to HK$7.20 each, according to a sales document obtained yesterday by Bloomberg News. About half the stock will go to nine so-called cornerstone investors, including Government of Singapore Investment Corp. and Tiger Global Management LLC, which agreed to invest US$40 million each.
Sun Art is pressing ahead with its Hong Kong IPO shortly after the city’s benchmark Hang Seng Index had five straight weeks of losses, the longest stretch in 2 1/2 years. Only four of the 17 companies that started trading this year after raising more than US$100 million in a Hong Kong IPO have risen from their offer prices as of yesterday, according to data compiled by Bloomberg.
At least three companies have pulled Hong Kong IPOs since June 23, according to data compiled by Bloomberg. Casual-wear retailer China Outfitters Holdings Ltd. withdrew its offering yesterday, citing market conditions.
Citigroup Inc., HSBC Holdings Plc and UBS AG are managing Sun Art’s offering as global coordinators. BNP Paribas SA, China International Capital Corp., Goldman Sachs Group Inc. and Morgan Stanley are also arranging the IPO as joint bookrunners, people with knowledge of the transaction said this month.
No comments:
Post a Comment