CTG Duty-Free sets final offer price at HK$158; gross proceeds to reach circa US$2.1 billion

CHINA. China Tourism Group Duty-Free (CTG Duty-Free), the world’s largest travel retailer by sales [Source: The Moodie Davitt Report’s annual Top Travel Retailers league], today announced its final offer price for its secondary listing on The Stock Exchange of Hong Kong.

The price is HK$158.00 per H Share (exclusive of brokerage of 1.0%, SFC transaction levy of 0.0027%, FRC transaction levy of 0.00015% and Hong Kong Stock Exchange trading fee of 0.005%).

Senior CTG Duty-Free management celebrate the offering. Pictured left to right are Yu Hui, General Accountant; Wang Xuan, Standing Deputy General Manager; Peng Hui, Chairman of the Board and Executive Director; Chen Guoqiang (Charles Chen), Executive Director and General Manager and President of CDFG; and Chang Zhujun, Deputy General Manager, Secretary to the Board and Joint Company Secretary

The gross proceeds from the Global Offering, before deducting underwriting fees and the offering expenses, are expected to be approximately HK$16,236.4 million/US$2.1 billion (assuming the Over-allotment Option is not exercised).

In addition, the company has granted the over-allotment Option to the International Underwriters, exercisable by the Joint Representatives (on behalf of the International Underwriters), at any time from the Listing Date until 30 days after the last day for lodging applications under the Hong Kong Public Offering.

CTG Duty-Free will invest heavily at home and abroad. Pictured is a rendering of the spectacular Haikou International Duty Free Shopping Complex set to open on 30 September.

This would require the company to issue up to an aggregate of 15,414,200 additional H Shares, representing not more than 15% of the number of Offer Shares initially available under the Global Offering, at the Offer Price to (among other things) cover over-allocations in the International Offering.

CTG Duty-Free confirmed today that it intends to use the net proceeds from the Global Offering for (i) reinforcing domestic channels; (ii) expanding overseas channels; (iii) improving supply chain efficiency; (iv) upgrading information technology system; (v) marketing and further improving its customer loyalty programmes; and (vi) working capital and other general corporate purposes.

Assuming the Global Offering becomes unconditional at or before 8:00 a.m. on Thursday, 25 August, dealings in the H Shares on the Main Board of The Stock Exchange of Hong are expected to commence at 9am on the same day. The H Shares will be traded in board lots of 100 H Shares each. The stock code of the H Shares is 1880.

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In July 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.

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