HONG KONG—A jewellery retailer controlled by Hong Kong tycoon Cheng Yu-tung plans to take orders Monday for its up to US$2.8 billion offering while a Chinese firm that specializes in saving energy at power plants kicks off a $1 billion listing, the latest in the flood of Hong Kong initial public offerings that are tapping investor funds despite market volatility and investor wariness.
Chow Tai Fook Jewellery Group Ltd., which will start taking orders from investors Monday, plans to raise up to $2.8 billion in a Hong Kong IPO by selling 1.05 billion shares for between 15 and 21 Hong Kong dollars (US$1.92-US$2.69) a share, people familiar with the situation said Friday.
That range values the jeweller at up to US$27 billion and a valuation of around 15 times to 21 times 2013 forecast earnings for the year to March— more than the 11 times the 2013 forecast earnings at which its smaller rival Luk Fook Holdings International Ltd. trades.
U.S.-listed jeweller Tiffany & Co., which has a market value of US$8.9 billion, trades at 16.4 times forecast earnings, according to FactSet.
If it raises US$2.8 billion—the fund-raising size at the top end of the range— Chow Tai Fook’s IPO will be the largest globally since July, when Spain’s third-largest bank, Bankia S.A, raised US$4.4 billion ahead of a Madrid listing