Coach, Prada, Michael Kors...Hong Kong 1st for IPOs
By FashionUnited
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Hong Kong has seen a record HK$271.3 billion (approximately Rs 1,60,000 crores) raised in 2011, keeping its world number one title for a third year straight and thanks to the 90 IPOs that were launched in the Hong Kong market. However, and despite the deluge of stock debuts, the funds raised fell nearly 47 per cent below 2010's US$67.9 billion (about Rs 3,20,000 crores).
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Despite Michael Kors and Prada were the IPOs that arose the largest buzz within the fashion industry, other big-name in this league, such as U.S. handbag maker Coach and luggage-maker Samsonite decided to launch their IPOs on HKEX. It was also the case for Chow Tai Fook Jewellery Co., the world's largest jewelry chain, made its US$2 billion (about Rs 10,000 crores) debut, while shares in local second-hand handbag retailer Milan Station closed more than 2,000 times oversubscribed.
Experts in trading highlight that many retail and consumer companies are wanting to raise brand awareness and prefer to be listed in Hong Kong, due to an advantage they get when entering Chinese mainland.In this vain, it´s worthy to remember that China is the second largest market in the world for luxury goods. China overtook Japan as the world's second largest luxury goods market in 2010, as unveiled the "Luxury Goods Worldwide Market Study" compiled by consultancy firm Bain & Company.