Chow Tai Fook to become largest IPO in Hong Kong

Chow Tai Fook Jewellery Group Ltd., controlled by real-estate

billionaire Cheng Yu-tung, will become the largest IPO launched this year in the buoyant Hong Kong stock exchange, as the jeweler aims to raise as much as $2.8 billion (Rs 15,000 crores).
 
The Hong Kong-based jewelry chain, with revenue greater than Tiffany & Co. as stresses the San Francisco Chronicle, set a price range of between HK$15 and HK$21 each for the 1.05 billion new shares on sale, according to a prospectus released on 4th of December. The stock is to start trading Dec. 15.
 
The offering will test investors' appetite after shares of Prada SpA, which raised $2.5 billion (Rs 12,500 crores) in Hong Kong's biggest IPO so far this year, declined since debuting in June. Sales of luxury items in China will more than double from last year to about $28 billion (Rs 141703 crores) in 2015, McKinsey & Co. estimates.
 
Companies have raised more than $15 billion (Rs 67041 crores) from initial public offerings so far this year, compared with $46.3 billion (Rs 2,31,500 crores) for the same period last year, data compiled by Bloomberg show.
 
Chow Tai Fook, with more than 1,400 outlets in China, forecasts net income of more than HK$6.3 billion (Rs 4,410 crores) in the year ending March 31, according to a statement to Hong Kong's stock exchange earlier.