The initial public offering of retailer A.S. Watson Co will likely happen this year with Hong Kong as one of the venues for the planned dual listing, billionaire Li Ka-shing said on Friday. The 85-year-old tycoon has been reviewing strategy options for Watson, which is owned by his Hutchison Whampoa Ltd conglomerate, with the funds from the potential IPO set to be used to fuel a major drive in health and beauty products in China.
The listing could value the company at about $23 billion, Reuters reported last year. If 25 percent of A.S. Watson is floated, a standard Hong Kong IPO percentage, the IPO could raise close to $6 billion.
"A.S. Watson will have to be a dual listing and it is a must in Hong Kong," Li said at a news conference to discuss the results of his Hutchison Whampoa Ltd and Cheung Kong (Holdings) Ltd conglomerates.
"A.S. Watson is a big business. For listing one of the places must be Hong Kong. I can't tell you exactly the time. I hope it can make it for this year. What I can say is within this year."