By  on December 9, 2011

HONG KONG — Hong Kong-based jeweler Chow Tai Fook is seeking to raise $2 billion in a Hong Kong initial public offering, pricing shares at the low end of the indicative price range, according to people familiar with the situation.

The jeweler, controlled by Hong Kong tycoon Cheng Yu-tung, priced 1.05 billion shares at 15 Hong Kong dollars, or $1.93, a share, the person said. The indicative range given on the company’s prospectus was 15 to 21 Hong Kong dollars, or $2.70, per share. The stock offering, which is scheduled to list next Thursday, will account for 10.5 percent of the company’s enlarged share capital.

Founded in Hong Kong in 1929, Chow Tai Fook is the dominant jeweler in China with a retail network of more than 1,500 points of sale in more than 250 cities in mainland China, Hong Kong, Macau and elsewhere in Asia.

Chow Tai Fook is the latest luxury goods company listing in Hong Kong as companies seek to expand or raise their profile in the region.

Earlier this month, bag and accessories maker Coach had a secondary listing in the city. London-based jeweler Graff Diamonds is planning to raise as much as $1 billion in a listing next year. Prada SpA raised nearly $2.5 billion in its Hong Kong IPO earlier this year.

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