CVC-backed Samsonite raises $1.25b in Hong Kong IPO
Private equity-backed luggage maker Samsonite raised $1.25 billion in its Hong Kong IPO after pricing shares at the bottom of a revised price range.
The company, which is owned by CVC Capital Partners, sold its stock at HK$14.50 per share, one day after narrowing the price range to HK$14.50-$15.50 from HK$13.50-$17.50, Reuters reported. The IPO valued Samsonite at 18.3x projected earnings for 2011 compared to an average price-to-earnings ratio of 20.1 for Asia ex-Japan companies, according to CLSA.
The size of the offering was reduced due to concerns about weak investor demand. Two companies have shelved IPOs in Hong Kong in the last few days and another that followed through on its listing plunged on making its trading debut.
CVC stood to earn about $521 million from the sale, while RBS, another shareholder, was on course for a $300 million windfall. The private equity firm bought Samsonite in 2007 for $1.7 billion, including debt, and funded most of the transaction with a loan from RBS.
A subsequent round of restructuring - necessitated by downturn in business due to the global financial crisis - saw RBS take a near 30% stake in the company.
The IPO was managed by Goldman Sachs, HSBC and Morgan Stanley, with UBS and RBS acting as joint bookrunners.
More on Consumer
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.