Business
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Samsonite raises $1.25bn in Hong Kong IPO

Samsonite luggage
Image caption Samsonite was founded in Denver, Colorado, in 1910

Samsonite has raised US$1.25bn (£767m) in an initial public offering in Hong Kong.

The 100-year-old luggage maker sold shares at HK$14.50 each, the lower-end of its proposed price range.

The shares are due to begin trading on 16 June.

Samsonite, which is owned by private equity group CVC and the Royal Bank Of Scotland, is the latest foreign company to seek a Hong Kong listing. Fashion house Prada is looking to raise $2.6bn.

Analysts said the companies would struggle to obtain top prices as poor market sentiment had dampened investor appetite.

Hong Kong's Hang Seng index has fallen in recent weeks.

Huaneng Renewables, the wind-power unit of China's biggest electricity producer, dropped as much as 11% on Wednesday - its first day of trading in Hong Kong.

Market Data - BBC News

Market Data

Share Prices

Markets

UK markets
UK markets % change Value
Change
+0.03%
7333.54
+2.42
-0.01%
20498.37
-2.08
Europe markets
Europe markets % change Value
Change
+0.41%
545.30
+2.23
+0.38%
5414.25
+20.51
+0.20%
12243.26
+24.24
+0.34%
3379.91
+11.35
+0.52%
9535.60
+49.30
US markets
US markets % change Value
Change
+0.61%
26405.76
+158.80
-0.08%
7950.04
-6.07
+0.13%
2907.95
+3.64
Asia markets
Asia markets % change Value
Change
-0.45%
37121.22
-169.45
+0.26%
27477.67
+70.30
+0.01%
23674.93
+2.41
As of 09:07 20 Sep 2018

Currencies

GBP
% change One £ buys
Change
GBP against Euro
+0.20%
€1.1284
+0.0020
GBP against Yen
+0.28%
¥148.0350
+0.4200
GBP against USD
+0.43%
$1.3201
+0.0060
USD
% change One $ buys
Change
USD against Euro
-0.15%
€0.8554
-0.0010
USD against GBP
-0.35%
£0.7581
-0.0030
USD against Yen
-0.03%
¥112.2500
-0.0350
Euro
% change One € buys
Change
Euro against GBP
-0.20%
£0.8862
-0.0020
Euro against Yen
+0.08%
¥131.1850
+0.1000
Euro against USD
+0.16%
$1.1692
+0.0020
Yen
% change One ¥ buys
Change
Yen against Euro
-0.13%
€0.0080
0.0000
Yen against GBP
-0.32%
£0.0070
0.0000
Yen against USD
+0.03%
$0.0090
0.0000
As of 09:10 20 Sep 2018

Commodities

Oil
Commodity % change dollars per barrel
Change
Brent Crude Oil Futures
-0.03%
79.38
-0.02
WTI Crude Oil Futures
+0.41%
71.06
+0.29
Gold
Commodity % change dollars per ounce
Change
Gold (Forex Index am fix)
+0.30%
1203.00
+3.60
Gold (Forex Index pm fix)
+0.26%
1203.30
+3.10
Natural Gas
Commodity % change dollars per million BTU
Change
Natural Gas (Henry Hub Futures)
-0.17%
2.90
-0.01
As of 09:10 20 Sep 2018

"The Samsonite IPO is a very big size and the valuation is too high," said Peter Lai, a director at DBS Vickers in Hong Kong.

Samsonite had proposed to sell 671.2 million shares in a HK$13.50 to HK$17.50 range.

It will use the proceeds of the sale to pay off its debts.

CVC bought Samsonite in 2007 for $1.7bn at the height of the credit boom.

But the company struggled when travel was hit by the financial crisis and Royal Bank of Scotland ended up taking a 30% stake as part of a debt restructuring.

The company is betting on growth in Asia, where leisure travel is becoming increasingly affordable.

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