China Tourism launches $2.16 bln Hong Kong listing - term sheet

By Scott Murdoch

HONG KONG, Aug 12 (Reuters) - China Tourism Group Duty Free Corp is aiming to raise $2.16 billion by selling 102.76 million shares starting on Friday, according to a term sheet reviewed by Reuters, in what will be the largest Hong Kong listing in 2022.

The shares will be priced between HK$143.50 and HK$165.50 ($21.10) each, the term sheet said.

China Tourism did not immediately respond to a request for comment from Reuters.

The launch of the deal comes as Hainan island, in China's south where China Tourism has several major shopping outlets, remains hit by COVID-19.

The price range represents a 29.3% to 38.7% discount to the stock's 201.19 yuan closing price on Thursday in Shanghai.

Hong Kong share sales of Chinese listed companies are typically offered at a discount to entice investors to buy the stock but the flagged range of China Tourism is higher than normal.

China Tourism's Shanghai listed shares closed at 201.19 yuan on Thursday, up 2.64%. The stock has recovered most of the territory lost when lockdowns across Hainan began to be ordered last week. Its shares though are down 8.3% year to date.

China Tourism, which has built the largest duty-free retail network in China, plans to set the final price next Thursday, the term sheet said.

Almost 40% of the stock on offer in the deal has been sold to cornerstone shareholders who will invest about $795 million, according to the term sheet.

($1 = 7.8438 Hong Kong dollars)

(Reporting by Scott Murdoch; Editing by Christian Schmollinger and Stephen Coates)

((Scott.Murdoch@thomsonreuters.com;))

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