Duty-free group China Tourism is hoping to raise up to $3 billion in a downsized Hong Kong secondary stock market listing, acknowledging its business had been heavily affected by the coronavirus pandemic and related travel restrictions.
The company had been planning to raise $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 on China stocks.
The company’s Shanghai-listed shares fell 3.4% in Friday morning trading after rising 6.3% on Thursday to reach their highest close since November. The China stock market overall was flat.
The company, whose full name is China Tourism Group Duty Free Corporation, 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.
China Tourism did not immediately respond to an emailed request for comment sent outside 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 from the stock market. A deal could take place as soon as the third quarter of 2022, they added.
The company has more than 200 duty free stores in China, Hong Kong, Macau and Cambodia, according to its filings.
- Reuters, with additional editing by George Russell
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