Duty free store operator China Tourism aims for $2-3b Hong Kong listing

REUTERS/Bobby Yip

China Tourism Group Duty Free Corp Ltd is aiming to raise $2-3 billion in a Hong Kong secondary listing, two people with direct knowledge of the matter told Reuters.

The company lodged updated filings with the Hong Kong Stock Exchange on Thursday as it begins its second attempt within a year to carry out a listing in the city.

The sources declined to be named as the information was not public.

China Tourism did not immediately respond to an emailed request for comment sent outside of business hours in China.

The filings did not outline the deal size or timing, but the two sources said the company would aim to raise $2-3 billion.

A deal could take place as soon as the third quarter of 2022, they added.

The company’s shares rose 6.3% on Thursday to reach their highest close since November.

China Tourism had aimed to raise about $6 billion in Hong Kong last year, but put the deal on hold in December because of the impact of the pandemic and volatile financial markets.

The company has more than 200 duty free stores in China, Hong Kong, Macau and Cambodia, according to its filings.

China Tourism said its business had been heavily impacted by the pandemic in mainland China and travel restrictions.

But it said the revenue impact had been lessened by rule changes put in place to help encourage domestic consumption in order to revive the Chinese economy.

Reuters

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief
Subscribe to Newsletter

You have 3 free stories remaining for the month. Register to continue reading our content