Club Med owner launches IPO with eye to raise $547 mn
The owner of French luxury holiday resort group Club Med on Friday launched an initial public offering in Hong Kong, hoping to raise more than half a billion dollars.
Fosun Tourism, a unit of the sprawling Fosun Group, is offering 214.2 shares for between HK$15.60 and HK$20.00, it said in a prospectus and hopes to price the deal by next Friday with a listing a week later. It hoped to raise up to $548 million.
As well as the Club Med brand, which it bought for more than $1 billion in 2015, Fosun owns the Atlantis Sanya, a high-end hotel complex in China's popular holiday destination of Hainan island.
The IPO is the latest in Hong Kong, where $33 billion has been raised this year from new listings, more than twice as much as last year, according to Bloomberg News.
However, a number have struggled to kick on after their debuts -- including phone giant Xiaomi and China Tower -- as global equity markets are hit by uncertainty caused by the China-US trade war, as well as slowing economic growth globally and particularly in China.
Fosun Group is one of China's "grey rhino" companies -- along with Wanda, HNA and Anbang -- that have come under scrutiny from mainland authorities wanting to crack down on debt-fuelled foreign acquisitions.
The Shanghai-based conglomerate has interests in property, finance, pharmaceuticals, steel and entertainment.