The logo of Chinese conglomerate Fosun is seen on top of a building in Beijing on Dec 12, 2015. (GREG BAKER / AFP)
Fosun Tourism Group, the unit of billionaire Guo Guangchang’s drugs-to-insurance conglomerate that’s seeking to raise as much as US$548 million in a Hong Kong IPO, expects to price the deal toward the bottom of a marketed range.
The company, which owns luxury resort brand Club Med, has received enough orders to cover the portion of the IPO set aside for institutional buyers, according to a message communicated to fund managers Thursday. Investors’ price sensitivity is toward the low end of the range, which runs from HK$15.60 to HK$20 per share, the message shows.
Fosun Tourism aims to price its share sale Dec 7 and begin trading Dec 14. It would join other Hong Kong IPOs this week from mobile advertising startup Mobvista Inc. and Natural Food International Holding Ltd., maker of “Wugu Mofang” brand health products, which were completed at or near the low end of their price ranges.
READ MORE: Fosun Tourism eyes HK$4.14b IPO in HK
Alibaba Group Holding Ltd., Shun Tak Holdings Ltd. and Suchuang Gas Corp. agreed to buy about US$49 million of stock in Fosun Tourism’s offering as cornerstone investors, its prospectus shows. JPMorgan Chase & Co., CLSA Ltd. and Citigroup Inc. are joint sponsors of the deal.
Fosun Tourism also owns Atlantis Sanya, a luxury hotel development overlooking the South China Sea on tropical Hainan island, where the government has started a push to promote tourism.
HONG KONG NEWS