Family business Chow Tai Fook raises $2 billion in IPO
Family-controlled Chow Tai Fook has raised less than expected from its initial public offering in Hong Kong, according to media reports.
A number of news providers, quoting sources close to the family business, said Chow Tai Fook raised $2 billion (€1.5 billion), much less than the $2.8 billion it reportedly expected.
Shares of the business, which is the world’s biggest jewellery chain by market capitalisation, were priced at HK$15 each (€1.46), despite being initially marketed at between HK$15 to HK$21, according to reports.
The offer price values the company, founded in 1938 by Chow Chi Yuen, at $19.3 billion. Shares in the jeweller will start trading on 15 December.
Chow Tai Fook, which is planning to use some of the IPO proceeds to fund its expansion in China, did not respond to requests for further details.
Chow Chi Yuen’s son-in-law Cheng Yu-tung, 86, joined the business in the 1940s and is currently honorary chairman.
Cheng Yu-tung’s son Henry Cheng Kar-Shun is chairman, while his brother Cheng Yu-Wai is honorary adviser to the board. His grandsons Adrian Cheng Chi-Kong and Conroy Cheng Chi-Heng also hold roles on the board, alongside nephews Wilson Cheng Kam-Biu and Timothy Cheng Sek-Hung.
In fiscal 2011, Chow Tai Fook had revenues of HK$ 35.04 billion, up almost 53% on the previous year.
