CHINA. China Tourism Group Duty Free Corp Limited (China Tourism Group), the parent company of China Duty Free Group (CDFG), today unleashes its secondary listing on The Stock Exchange of Hong Kong in what Bloomberg said could be Hong Kong’s largest public offering in 15 months.
Books are open from today (12 August) until 18 August when shares are due to be priced. The first day of trading is set for 25 August, Bloomberg said.
China Tourism Group, parent of the world’s largest travel retailer (according to The Moodie Davitt Report’s annual ‘Top Travel Retailers’ sector benchmark rankings) is selling 102.8 million shares in an effort to raise up to HK$17 billion ($2.17 billion), Bloomberg and Reuters reported.
The number could go even higher, according to a report in the South China Morning Post today. Noting that the shares are priced between HK$143.5 and HK$165.5 each, the report said this will allow China Tourism Group to raise up to US$2.17 billion at the top end of the price range, and up to US$2.49 billion if an overallotment option is exercised with additional demand.
China Tourism Group, which is already listed on the Shanghai Stock Exchange, has attracted nine cornerstone investors. The South China Morning Post said that the nine companies have committed a combined HK$6.238 billion (US$795 million) or 39.3% of the offer. The China State-Owned Enterprise Mixed Ownership Reform Fund led the cornerstones, it said, with a HK$1.2 billion stake, followed by the South Korean cosmetics producer AmorePacific Group, China’s state shipping firm Cosco Shipping, and Rongshi International each with HK$785 million, the report said, quoting the offer term sheet.
Other cornerstone investors, each with six months of lock-up period, are Shanghai Airport, powerful Chinese liquor company Luzhou Laojiao (which is investing US$80 million -Ed), China Structural Reform Fund, Hainan Free Trade Port Construction Investment Fund and the Los Angeles-based asset manager Oaktree Capital Management, according to The South China Morning Post.
As reported, China Tourism Group suspended its initial bid to list in Hong Kong last December due to inclement market conditions. We will bring you more details soon on this key breaking story.
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About China Tourism Group Duty Free Corporation Limited
The group was established in 1984 and after nearly 40 years of development has become a powerful sector player primarily focusing on sales of high-quality duty free and duty paid merchandise to domestic and international travellers.
Based on The Moodie Davitt Report’s annual sector rankings, Frost & Sullivan noted that CDFG had become the world’s number one travel retailer in 2020 and 2021, with a 24.6% market share of the global travel retail industry in 2021.
The company enjoys stable long-term relationships with world-renowned brands, and has also formed direct procurement channels with over 430 merchandise suppliers and more than 1,200 brands worldwide. It operates 193 stores, including 184 in 100 cities across 28 provinces, municipalities and autonomous regions in China.
These are bolstered by overseas duty free stores, including seven in the Chinese Special Administrative Regions of Hong Kong and Macau, Cambodia and two cruise duty free stores. It is the only travel retailer covering all duty free sales channels in China, including airport and seaport shops, offshore stores, downtown shops, cruiselines and ship supply and inflight retail.
In June The Moodie Davitt Report launched a new quarterly eZine called The Moodie Davitt China Travel Retail Report. The cover story is dedicated to China Tourism Group and CDFG. Click on the image to read the bi-lingual title. The next edition will be published in October. Please email Kristyn@MoodieDavittReport.com for a free first year subscription.
