World’s biggest jeweller plans billion-dollar IPO

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Chow Tai Fook to float on the Hong Kong market next month.

Chow Tai Fook, the world’s biggest jewellery group, is planning a US$3 billion (£1.89bn) IPO on the Hong Kong stock exchange next month. 

The IPO of the jewellery retailer, which is owned by Hong Kong tycoon Cheng Yu-tung, is expected to be one of the biggest this year.

Chow Tai Fook had originally valued the IPO at more than $3 billion but has since reduced this after taking tough global market conditions into account. 

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The jewellery retailer is planning to offer 1.05 billion shares, 76.2% of which are primary shares and 23.8% as secondary shares. Book-building will start on November 28 and pricing is scheduled for December 8, while December 15 is the date set for the listing. 

Chow Tai Fook is a major player in the jewellery market in Asia, despite being relatively unknown outside of the region. The company has been trading for 80 years and now has 1,500 jewellery stores with annual growth of 60%.

Last year Chow Tai Fook was the buyer of what was at the time the world’s highest selling rough diamond. The jewellery company, whose name means good luck in Cantonese, bought the 507ct stone for US$35.3 million.

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