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Hong Kong's Chow Tai Fook raises less than hoped in IPO | Hong Kong's Chow Tai Fook raises less than hoped in IPO |
(about 1 hour later) | |
Hong Kong jewellers Chow Tai Fook says it has raised $2bn (£1.3bn) by selling shares to investors. | |
The amount raised makes it Hong Kong's third biggest initial public offering this year but was less than the maximum of $2.8bn it had hoped to tap. | |
Volatile global stock markets have hurt investor demand for new share issues. | Volatile global stock markets have hurt investor demand for new share issues. |
While its name does not register far outside its home market, Chow Tai Fook is a major brand in China and its share offering had been hotly anticipated. | While its name does not register far outside its home market, Chow Tai Fook is a major brand in China and its share offering had been hotly anticipated. |
According to a Hong Kong stock exchange filing, the company priced the shares at HK$15 (£1.24; $1.92) the bottom of a HK$15-21 range. | According to a Hong Kong stock exchange filing, the company priced the shares at HK$15 (£1.24; $1.92) the bottom of a HK$15-21 range. |
It said the portion of the shares offered to international investors was "moderately over-subscribed". | It said the portion of the shares offered to international investors was "moderately over-subscribed". |
Growth plans | Growth plans |
The deal values the company at about $19.2bn, more than twice the size of US jeweller Tiffany & Co. | The deal values the company at about $19.2bn, more than twice the size of US jeweller Tiffany & Co. |
However, the amount raised by Chow Tai Fook lagged behind the $2.5bn Italian fashion house Prada raised in its Hong Kong IPO in June and the $2.06bn raised by Shanghai Pharmaceuticals. | However, the amount raised by Chow Tai Fook lagged behind the $2.5bn Italian fashion house Prada raised in its Hong Kong IPO in June and the $2.06bn raised by Shanghai Pharmaceuticals. |
Chow Tai Fook is controlled by Hong Kong tycoon Cheng Yu-tung, the former British territory's fifth-richest man. | Chow Tai Fook is controlled by Hong Kong tycoon Cheng Yu-tung, the former British territory's fifth-richest man. |
The company has 1,500 stores in Hong Kong and China and it plans to increase this to 2,000 outlets by 2016. | The company has 1,500 stores in Hong Kong and China and it plans to increase this to 2,000 outlets by 2016. |
The company's shares will begin trading on Thursday. | The company's shares will begin trading on Thursday. |
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