Nov 30, 2018 (China Knowledge) - Fosun Tourism Group, a unit of Shanghai-based conglomerate Fosun International, will be commencing order-taking for an initial public offering (IPO) on the Hong Kong stock exchange which seeks to raise up to USD 548 million.
The group will be offering 214.2 million shares at a price range of between HKD 15.60 to HKD 20.00 (USD 1.99 to USD 2.56) per share. According to its prospectus, units of Alibaba, Shun Tak Holdings and Suchuang Gas Corp have pledged to purchase about USD 49 million worth of stock in the offering as cornerstone investors.
The company had initially planned to raise up to USD 1 billion through the IPO but scaled it back due to weak investor sentiments, adding to the number of companies which have already slashed their IPO targets this year such as Xiaomi and Alibaba-backed Babytree Group.
In the first 10 months of this year, Hong Kong saw USD 33 billion raised through IPOs putting it on track to become the top IPO destination this year. However, IPOs have not performed well this year with 4 out of the top 5 largest IPOs this year trading below their off prices. The Hang Seng Index has also fallen by more than 13% year to date.
Fosun Tourism will be priced on 7th December and will be listed on 14th December.nces to consumers as they incorporate both their strengths in the online and physical retail world respectively.
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