Hong Kong-listed Samsonite plans dual listing in hunt for investors

Credit: REUTERS/Max Rossi

Company said pursuit of a dual listing is at an early stage

US would likely be the listing venue for Samsonite, sources say

Shares have climbed 19.2% year-to-date, LSEG data showed

Samsonite went public in Hong Kong in 2011

Adds more comments from Samsonite, context and background of company, shares performance in paragraph 4 and from paragraph 8

March 22 (Reuters) - Luggage maker Samsonite International 1910.HK on Friday said it plans to pursue a dual listing in addition to its listing on the Hong Kong Stock Exchange to increase the liquidity of its shares and reach investors in more markets.

Samsonite did not provide details of the exchanges it is considering for the second listing, saying "pursuit of a dual listing is at an early stage".

The U.S. would be the likely venue, said two people familiar with the situation.

Samsonite joins global names such beauty-shop chain L'Occitane 0973.HK and fashion house Prada 1913.HK in searching for options beyond Hong Kong, where valuations have dropped in the decade since booming private wealth persuaded non-Asian brands to raise their profile in the region.

The company, which was founded in the U.S. in 1910 and also owns the American Tourister and Tumi luggage brands, said an additional listing would allow it to reach investors in markets that are an important part of its global footprint and growth drivers for its business.

Samsonite explored a take-private earlier this year and has held discussions with advisers and investors, Reuters has reported.

The company said its board decided to focus on pursuing a dual listing after a preliminary review of potential paths.

"The Asia market continues to be incredibly important for the group's core brands, and the company looks forward to continuing to successfully grow its business there and in other regions around the world," Samsonite said in its filing.

Asked if Samsonite would consider a U.S. listing, the company said in an emailed response to Reuters that it has nothing to add beyond its announcement on Friday morning.

"We will make further announcements in accordance with applicable laws and regulations, as and when appropriate," its spokesperson said in the email.

But valuations of Hong Kong-listed companies have sagged in recent years amid prolonged recession in the financial hub since 2019's pro-democracy protests, not helped by China's slowing economy and tension with the U.S.

L'Occitane and Prada have since considered options including additional listings to gain more global investor interest.

Chinese billionaire entrepreneur and Olympic champion Li Ning is considering taking his namesake sportswear company private from the Hong Kong stock exchange, Reuters reported on March 12.

Shares of Samsonite have climbed 19.22% year-to-date amid rebound in tourism in Asia while its market capitalisation was $5.69 billion as of the end of Thursday, LSEG data showed.

Samsonite's shares dropped around 7% on Friday morning, versus a 1.7% decline in the Hang Seng Index .HSI.

(Reporting by Ayushman Ojha in Bengaluru, Kane Wu in Hong Kong and Yantoultra Ngui in Singapore; Editing by Jamie Freed and Christopher Cushing)

((Ayushman.Ojha@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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