Home Wealth  Money Sun Art Raises $1 Billion In Hong Kong IPO

Sun Art Raises $1 Billion In Hong Kong IPO

Posted: Jul. 11th, 2011  |  By Forbes

powered by Forbes

RSS Syndicated News Email a Friend Suggest an Article Share Visit Website
image

Sun Art Retail Group raised 8.2 billion Hong Kong dollars ($1.05 billion) by selling over 1.14 billion shares in a Hong Kong initial public offering.

Priced at 7.20 Hong Kong dollars ($0.93) per share, the top end of the indicative range, Sun Art's IPO attracted strong demand from both institutional and retail investors.

The retail tranche, originally accounting for 10% of the total offering, was 42 times oversubscribed and triggered a claw-back that increased the portion to 20%.

Meanwhile, the institutional tranche fell to 80% with 15 times oversubscribed. More than 500 investors were attracted, according to a source familiar with the matter, including nine guaranteed cornerstone investors contributing a total of $420 million worth of shares.

The Shanghai-based retailer is the largest hypermarket operator in China with a 12% market share, followed by Wal-Mart's (nyse: WMT - news - people ) 11.2%.

A joint venture between French retail operator Groupe Auchan SA and Taiwanese Ruentex Group, Sun Art currently operates 197 hypermarkets across 21 provinces in mainland China under two brand names, Auchan and RT-Mart.

Ruentex Group is a Taiwanese conglomerate that covers retailing, construction as well as education. Ruentex is chaired by Taiwanese billionaire Samuel Yin Yen-Liang, ranked by Forbes as the 24th richest person in Taiwan with an estimated net worth of $1.43 billion.

Sun Art was the second company this year in Hong Kong to raise more than $1 billion after MGM China in May, according to data from Bloomberg.

The pricing gave Sun Art a market capitalization of 67.5 billion Hong Kong dollars ($8.67 billion). The group said in their prospectus that 50% of the money raised will be used to fund new hypermarkets in China.




Share on Facebook Share
See Next Article
Write a Story/Review about this topic

Post a Comment

 
Need to Get Away?
Top 10 Business Hotels
Who says you canít mix business with pleasure?
Read More
More Articles from Forbes.com

advertisement
Quick Links
Autos
Boating
Real Estate
Luxury Travel
Fashion
Search Real Estate
Find Your Dream Home
Search for homes by
State, Country or Style.
Event Calendar
advertisement
Current News & Features
Canine Royalty Wants to Get Your Pooch Runway Ready!
Turn Your Home Into a Winter Wonderland With the Balsam Gazebo Candle
Nick Offerman Hilariously Schools Us On Fine Scotch Whisky in New Video Series
La Quinta Resort is Blown Away By JBF Rising Star Semi-Finalist Chef Ruiz in Taste of Waldorf Astoria
Katey Sagal and Jimmy Smits Spill their Guts on the Sons of Anarchy Series Finale (SPOILERS)
Practice Your Left Hook With Karl Lagerfeld's Limited Edition $175K Punching Bag
Air France Opens Fully Renovated JFK Lounge for La Première, Business & Flying Blue Elite Plus Fliers
Per Se & French Laundry to Start Charging Diners in Advance for Prix Fixe Menus
Kaleidescape Launches New Alto Movie Library & Player After Pressure from Film Industry
Get the Insider Scoop on How Art Basel Transports Its Multi-Million Dollar Artworks
See the complete list
 
Featured Photo Gallery
See the complete list
THINGS WE LIKE