Fosun Tourism Group launches US$548m IPO

It is offering 214.2 million shares priced at $15.6 to $20 apiece.

Bloomberg reports that Fosun Tourism Group has started taking orders for a Hong Kong IPO of as much as US$548m with the aim of beginning trading on December 14.

The owner of luxury holiday business Club Med is offering 214.2 million shares at $15.6 to $20.00 apiece, according to a draft prospectus. Club Med is operational in over 40 countries and has resorts in more than 26 countries and regions.

The IPO proceeds will be used to expand the existing business, acquire rights to additional land, fund potential investments and repay outstanding bank loans, the group said in the draft prospectus posted on the HKEX website.

The latest offering would add to the US$33b of first-time share sales in Hong Kong in 2018 which is more than double the volume during the same period in 2017, Bloomberg data show,

However, the float comes at a challenging time for equities as roughly 75% of Hong Kong IPOs in 2018 are trading below their offer prices against the backdrop of heating trade tensions and China's economic slowdown.

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