Tourists shop at Sanya International Duty-Free Shopping Complex, Sanya, south China's Hainan province, on October 2, 2020. PHOTO VCG HONG KONG China Tourism Group Duty Free Corp, which operates the world's largest single-building duty-free shop in Hainan province, started taking orders for its H-share issue on Monday as it aims to raise HK $16.65 billion US $2.12 billion through its initial public offerings.
CTG Duty Free Corp operates seven duty-free stores in Hong Kong, Macao and Cambodia, selling perfume and cosmetics, tobacco and liquor, food, accessories such as watches, jewelry and clothing, and miscellaneous goods.
A 100 shares board will cost retail investor HK $16,716. For those willing to punt more than HK $1 million, 6,000 shares will cost more than that.
The Hong Kong offer is 5.13 million shares, or about 5 percent of the total offer of shares under the global offering, while the international offer is 97.62 million shares.
The offer closes on Thursday. The final pricing will be known on Wednesday, while the trading will begin on Thursday. The maximum price will be HK $165.50 per share.
CTG Duty Free Corp has reported net profit of 3.42 billion yuan and 2.93 billion yuan for three months ending March 31, 2021 and 2022 respectively. Revenues were 18.13 billion yuan and 16.78 billion yuan.
The company said that operating profit for the second quarter of 2022 was lower than the year before. It said the revenue decline was more severe than in the first quarter of this year because of store closures, disruptions to logistics and operations in Shanghai, discounts as promotions and a drop in overall consumption.
The coronaviruses has forced travelers to change their habits and spend less time in terminals and avoid visiting different locations in terminals, according to the company.
It said that it may have a long-term adverse affect on its business, financial conditions and results of operations.