Graff braves market woes to float at $1bn in HK
Saturday 19 May 2012
Graff Diamonds, the high-end jeweller, is forging ahead with an initial public offering to raise up to $1bn (£630m), setting a price range for its Hong Kong flotation despite a sell-off in equity markets.
The London-based jeweller, founded by the billionaire Laurence Graff in 1960, yesterday set an indicative share-price range at HK$25-HK$37, according to sources familiar with the plans.
Graff plans to sell $850m of new shares and $150m in existing shares, the sources added. The deal is expected to comprise 211-312 million shares and could rise by 15 per cent to meet additional demand.
Graff is hoping to join the Italian fashion house Prada, luggage maker Samsonite, French cosmetics company L'Occitane and other global brands that have listed in Hong Kong looking to tap booming consumer demand and rising wealth in Asia.
The company is betting on resilient demand for diamonds and high-end jewellery, its founder said in November.
Graff is tapping Hong Kong equity markets after the worst start for IPOs in the Asia-Pacific region in about four years, with overall equity market activity down about a fifth from last year.
The benchmark Hang Seng index is down 7 per cent since 7 May, when Graff began meeting institutional investors and fund managers to gauge demand for the offering.
Graff's profit should reach $264m in 2014 from $117m, but the growth rate is forecast to slow in the coming years, analysts say.
- 2 Mystery man who gave mum heart-warming note on train 'wanted to put a smile on her face'
- 5 Amal Clooney gives excellent answer to fashion question at European Court of Human Rights
Mystery man who gave mum heart-warming note on train 'wanted to put a smile on her face'
Michelle Obama highlights harsh restrictions faced by Saudi women after meeting King Salman without wearing a headscarf
Mafia's wall of silence broken: Victim of Cosa Nostra's extortion rackets in its Corleone heartland co-operates with authorities for the first time ever
Amal Clooney gives excellent answer to fashion question at European Court of Human Rights
Sir David Attenborough interview: The one question about life that still baffles him
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
Louise Mensch says 'F**K YOU' in explosive tweets about David Cameron, Saudi Embassy and the Queen over King Abdullah tributes
iJobs Money & Business
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...
Competitive salary & benefits!: MBDA UK Ltd: MBDA UK LTD Indirect Procurement...
£16500 - £16640 per annum: Recruitment Genius: This fast growing Finance compa...