Chow Tai Fook Ltd. to seek up to US$2.83 billion in HK IPO: sources


HONG KONG — Chow Tai Fook Jewellery Group Ltd. could raise up to US$2.83 billion, which would be the biggest Hong Kong initial public offering of the year, tapping volatile equity markets to fund the purchase of diamonds and gold and pay down debt.

The Hong Kong-based company will offer 1.05 billion shares at HK$15 to HK$21 each, putting the total deal size at up to HK$22.05 billion (US$2.83 billion), two sources with direct knowledge of the deal told Reuters on Friday. The sources could not be named because details of the deal are not yet public.

The IPO, one of the most anticipated of the year because of its size and the wide brand recognition of Chow Tai Fook in Greater China, would value the company at about US$27 billion, nearly three times the size of U.S. jeweler Tiffany & Co.