China is forecast to be the world’s top buyer of products such as cosmetics, handbags, watches, shoes and clothes by 2015, according to consultancy PricewaterhouseCoopers. To capitalize on this opportunity, many luxury goods companies have filed their IPOs or joined the Hong Kong stock exchange.
In a move to bolster its presence in Asian markets, Coach announced that it will list just over 10% of its U.S.-based shares in Hong Kong.
In doing so, Coach has joined the ranks of other luxury labels such as Prada and Samsonite. Unlike Prada, which raised $2.1 billion, and Samsonite, which generated $1.2 billion for their respective IPOs, Coach’s offering will not raise additional cash but the move “would demonstrate Coach’s commitment to, and focus on, Asia,” it says.
Prada CEO Patrizio Bertelli hailed his company’s IPO as a “landmark” for Hong Kong, adding that it was “opening a new wave for the luxury goods sector.” He said, “We’re positive that the greater China region is going to be one of the most interesting prospects in the luxury industry.” Read more: http://bit.ly/tB8H19