Shares of Samsonite Worldwide dropped as a lot as 12% to their lowest stage in nearly a month on the Hong Kong inventory trade after the bags maker mentioned on Friday it plans to hunt a twin itemizing.
The corporate, which additionally owns the American Tourister and Tumi baggage manufacturers, didn’t say which exchanges it was contemplating for the second itemizing however two individuals conversant in the scenario mentioned the uswas a probable venue.
Samsonite mentioned the twin itemizing was geared toward rising the liquidity of its shares and to achieve extra traders. The plan is at an early stage, it mentioned.
“Whereas this transfer might profit its liquidity and increase investor base within the mid-to-long-term, we count on the share value to react negatively given potential share dilution,” Citi Analysis mentioned in a shopper notice.
Certainly, the shares slumped as a lot as 12% after the information. By noon, they had been down near 9% at HK$27.95, in contrast with a 3% decline within the Dangle Seng Index, LSEG information confirmed.
Nonetheless, Citi mentioned Samsonite’s valuation remained enticing on expectations that sustained journey demand will drive baggage demand, amongst different elements. It maintained a “purchase” advice on the inventory with a goal value of HK$36.80.
Different international manufacturers, resembling beauty-shop chain L’Occitane and style home Prada, have additionally thought-about further listings past Hong Kong, the place valuations have dropped within the decade since booming non-public wealth persuaded non-Asian manufacturers to lift their profile within the area.
Samsonite, based within the U.S. in 1910, mentioned a further itemizing would permit it to achieve traders in markets which are an vital a part of its international footprint and development drivers for its enterprise.
The corporate explored a take-private deal earlier this 12 months and has held discussions with advisers and traders, Reuters has reported.
The corporate mentioned its board determined to pursue a twin itemizing after a preliminary assessment of its choices.
“The Asia market continues to be extremely vital for the group’s core manufacturers, and the corporate appears ahead to persevering with to efficiently develop its enterprise there and in different areas world wide,” Samsonite mentioned in its submitting.
Requested if Samsonite would contemplate a U.S. itemizing, the corporate mentioned in an emailed response to Reuters that it has nothing so as to add past its submitting.
“We’ll make additional bulletins in accordance with relevant legal guidelines and laws, as and when acceptable,” its spokesperson mentioned within the e-mail.
Samsonite debuted on the Hong Kong inventory trade in 2011 at a time when a number of manufacturers together with L’Occitane and Prada needed to lift their profile amongst Asian shoppers and faucet the rising wealth of shoppers in Asia, particularly in China.
However valuations of Hong Kong-listed firms have sagged in recent times amid some financial weak spot since 2019’s pro-democracy protests, China’s slowing financial system and its rigidity with the U.S..
Different firms are selecting completely different choices.
Chinese language billionaire entrepreneur and Olympic champion Li Ning is contemplating taking his namesake sportswear firm non-public from the Hong Kong inventory trade, Reuters reported on March 12.
Shares of Samsonite have climbed 19.22% for the reason that begin of the 12 months as tourism in Asia rebounded. The corporate’s market capitalisation was $5.69 billion as of Thursday, LSEG information confirmed.
The corporate, which additionally owns the American Tourister and Tumi baggage manufacturers, didn’t say which exchanges it was contemplating for the second itemizing however two individuals conversant in the scenario mentioned the uswas a probable venue.
Samsonite mentioned the twin itemizing was geared toward rising the liquidity of its shares and to achieve extra traders. The plan is at an early stage, it mentioned.
“Whereas this transfer might profit its liquidity and increase investor base within the mid-to-long-term, we count on the share value to react negatively given potential share dilution,” Citi Analysis mentioned in a shopper notice.
Certainly, the shares slumped as a lot as 12% after the information. By noon, they had been down near 9% at HK$27.95, in contrast with a 3% decline within the Dangle Seng Index, LSEG information confirmed.
Nonetheless, Citi mentioned Samsonite’s valuation remained enticing on expectations that sustained journey demand will drive baggage demand, amongst different elements. It maintained a “purchase” advice on the inventory with a goal value of HK$36.80.
Different international manufacturers, resembling beauty-shop chain L’Occitane and style home Prada, have additionally thought-about further listings past Hong Kong, the place valuations have dropped within the decade since booming non-public wealth persuaded non-Asian manufacturers to lift their profile within the area.
Samsonite, based within the U.S. in 1910, mentioned a further itemizing would permit it to achieve traders in markets which are an vital a part of its international footprint and development drivers for its enterprise.
The corporate explored a take-private deal earlier this 12 months and has held discussions with advisers and traders, Reuters has reported.
The corporate mentioned its board determined to pursue a twin itemizing after a preliminary assessment of its choices.
“The Asia market continues to be extremely vital for the group’s core manufacturers, and the corporate appears ahead to persevering with to efficiently develop its enterprise there and in different areas world wide,” Samsonite mentioned in its submitting.
Requested if Samsonite would contemplate a U.S. itemizing, the corporate mentioned in an emailed response to Reuters that it has nothing so as to add past its submitting.
“We’ll make additional bulletins in accordance with relevant legal guidelines and laws, as and when acceptable,” its spokesperson mentioned within the e-mail.
Samsonite debuted on the Hong Kong inventory trade in 2011 at a time when a number of manufacturers together with L’Occitane and Prada needed to lift their profile amongst Asian shoppers and faucet the rising wealth of shoppers in Asia, particularly in China.
However valuations of Hong Kong-listed firms have sagged in recent times amid some financial weak spot since 2019’s pro-democracy protests, China’s slowing financial system and its rigidity with the U.S..
Different firms are selecting completely different choices.
Chinese language billionaire entrepreneur and Olympic champion Li Ning is contemplating taking his namesake sportswear firm non-public from the Hong Kong inventory trade, Reuters reported on March 12.
Shares of Samsonite have climbed 19.22% for the reason that begin of the 12 months as tourism in Asia rebounded. The corporate’s market capitalisation was $5.69 billion as of Thursday, LSEG information confirmed.
