Samsonite International S.A. raised US$1.25 billion by selling shares at the lower end of the proposed price range in its Hong Kong IPO, a person familiar with the deal said yesterday, amid waning investor interest as stock markets slump.
The world’s biggest luggage maker is selling 671.24 million shares at HK$14.50 a share, said the person, who spoke on condition of anonymity because they were not authorized to comment.
That would raise HK$9.73 billion (US$1.25 billion).
NARROWED BAND
Samsonite said last week that the shares would be sold between HK$13.50 and HK$17.50, allowing it to raise up to US$1.5 billion. However, the band was narrowed to HK$14.50 to HK$15.50 on Thursday, the person said.
Luxembourg-based Samsonite is one of a number of foreign companies seeking Hong Kong listings this year as they try to tap China’s economic growth, but selling its shares at the low end of the range indicates investor interest may be cooling in the face of slumping share prices.
ASIA DOWN
Most Asian stock markets moved lower yesterday over concerns global economic growth is slowing. Hong Kong’s benchmark Hang Seng index was 1.3 percent down at 22,315.47 as banking shares dropped. The Hang Seng has dropped more than 6 percent over the past three months, according to data from FactSet.
Other foreign companies that have listed in Hong Kong this year include Swiss commodities trader Glencore and Macau casino operator MGM China. Italian fashion house Prada and luxury handbag maker Coach also plan listings.
Samsonite’s stock is scheduled to start trading on Thursday.
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