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CTG DUTY-FREE HK Public Offering Has Been Fully Applied with High Multiple Order Coverage From International Placing



HONG KONG, Aug 18, 2022 – (ACN Newswire) – On August 15, 2022, China Tourism Group Duty Free Corporation Limited (“CTG DUTY FREE”) launched its global offering of H shares.

CTG DUTY-FREE recently held its H-share global offering press conference in Beijing to officially launch its global offering on the Hong Kong STOCK MARKET. Mr. Peng Hui, Chairman of the Board and Executive Director; Mr. Chen Guoqiang, Executive Director and General Manager; Mr. Wang Xuan, Executive Director and Standing Deputy General Manager; Mr. Chang Zhujun, Deputy General Manager, Secretary to the Board and Joint Company Secretary, and Mr. Yu Hui, General Accountant, attended the press conference and had communicated with reporters from domestic and international media.

At the press conference, the representative of the business’s sponsors provided a synopsis of the global offering to the media. CTG DUTY-FREE plans to issue approximately 103 million H Shares beneath the stock code of 1880.HK. The offer cost range is HK$143.5 to HK$165.5 per H Share, and the offering starts on August 15, 2022.

THE BUSINESS has successfully procured nine cornerstone investors, including China State-Owned Enterprise Mixed Ownership Reform Fund Co., Ltd., AMOREPACIFIC Group, COSCO Shipping (Hong Kong) Co., Limited, Rongshi International Holding Company Limited, Shanghai Airport Investment Corporation Limited, Luzhou Laojiao Co., Ltd., China Structural Reform Fund Corporation Limited, Hainan Free Trade Port Construction Investment Fund Co., Ltd., and The Oaktree Funds.

The management of CTG DUTY-FREE stated that to consolidate its leading position because the world’s largest travel retail operator, the business will continue steadily to build competitive barriers in its existing business and keep maintaining its industry leadership through ongoing efforts to build up offshore duty-free business, expand traditional retail channels in China, and additional develop high-quality duty-paid merchandise sales. THE BUSINESS will actively expand home based business and explore more profit growth opportunities, such as for example building more integrated travel retail complexes, opening downtown duty-free stores before competitors, and exploring overseas channels. THE BUSINESS may also reinforce its competitive advantages by deepening the partnership with upstream suppliers and domestic and overseas channels through the administrative centre operation. For instance, it’ll expand the upstream supply chain through direct cooperation with upstream brands or direct investment while seeking acquisition opportunities in domestic and overseas markets. THE BUSINESS will further strengthen its core capabilities, including operation management, procurement capability, supply chain management (logistics and distribution system), information system management and digitalization and marketing capabilities to accomplish continuous development. Furthermore, the business will attract and retain top-notch strategic talents to preserve corporate recruiting.

Regarding the H-share offering, the business’s management also taken care of immediately the concerns of the media and investors.

Concerning the possible positive influences of listing in Hong Kong, the management indicated that globalization is among the key strategic goals for the business’s long-term development. Hong Kong features an open and mature capital market, which international investors have more popular for several years. The listing in Hong Kong provides three advantages to the business. First, it can help further improve the Company’s brand influence and visibility in the international market and support the business in consolidating its leadership as a worldwide travel retail operator. Second, it’ll facilitate the business’s construction on both domestic and overseas financing platforms and promote its further development with support from domestic and overseas capitals. Third, it’ll build up the business’s capital barriers and enables the business to allocate more funding to the construction of projects such as for example Haikou International Duty Free Complex, Site II, Phase I of Sanya International Duty Free Complex, and downtown duty free stores. Fourth, it’ll promote the business’s globalization and continuous expansion of overseas business.

Regarding whether CTG DUTY-FREE will open stores in travel destinations for Chinese consumers, the business mentioned that since its establishment in 1984, it had expanded its business operation round the changing consumer patterns and needs. A growing amount of Chinese folks are travelling abroad, and Chinese tourists have grown to be a substantial consumer group in the global duty free and travel retail industry. Previously, the business opened and operated nine overseas duty free stores following footprints of Chinese tourists, which have achieved great results. Next, the business will continue steadily to open stores in popular destinations among Chinese travelers, its major consumer group, to improve the business’s performance and generate better investment returns for shareholders.

Regarding the impact of the recent COVID-19 pandemic in Hainan province on CTG DUTY-FREE, the business commented that the influence was only an impact and will not need a far more significant influence on the business’s operation in the mid to longterm. From 2021 and March to May 2022, Hainan and Shanghai have experienced COVID-19 resurgence one after another. When confronted with challenges, the business made comprehensive efforts offline and online to make sure a well balanced business operation. Specifically, the entire passenger foot traffic in Hainan Province in 2021 was only 97.4% of the pre-pandemic level. Still, the business generated revenue of RMB47.1 billion in Hainan, 3.5 times the corresponding revenue in 2019. Furthermore, from March to May 2022, the business’s operations were influenced by the epidemic to a certain degree, however the Company’s operations have recovered rapidly since late May. Since June, the business’s monthly sales have improved significantly, and the revenue in June increased 13% year-on-year. Moreover, in the initial 1 / 2 of 2022, the gross margin of the business’s core business improved by 5.5 percentage points weighed against the second 1 / 2 of 2021 and remained stable. Looking forward to the second 1 / 2 of this season and afterward, the business is likely to successfully launch several new projects, including Haikou International Duty Free Complex and Site II, Phase I of Sanya International Duty Free Complex, that will assist the business’s business expansion. Moreover, for the mid and longterm, the business has recently made a complete deployment in downtown stores and port stores, that may also donate to the business’s revenue growth later on.

The Hong Kong Public Offering was closed at noon on 18 August 2022. It is stated that the Hong Kong Public Offering has been fully applied, and the reactions from both retail investors and margin are positive. Additionally it is said that the business’s international placing was fully covered in a hour following the opening of the book building last Friday. Ahead of that, best-known international and Chinese institutions have actively placed orders to take part in the business’s global offering of H shares. The info said a higher multiple order coverage was achieved within two days.

Topic:IPO Sectors:Retail & eCommerce, Daily Finance

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From the Asia Corporate News Network

Copyright 2022 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.


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