CK Hutchison Reportedly Pauses Watsons Dual Listing Amid Weak Market, China Demand
On.cc · 4 SOURCESabout 3 hours ago2 MIN
Summary
CK Hutchison Holdings has reportedly suspended its plans to proceed with the dual listing of Watsons Group on the Hong Kong and London stock exchanges. According to sources cited by The Wall Street Journal, the conglomerate cited unfavorable market conditions and weak consumer demand in mainland China as key factors behind the decision to delay the IPO. The listing, which was originally planned for this autumn with an estimated valuation of $30 billion, has now been postponed to next year at the earliest. UBS and Goldman Sachs were appointed to arrange the offering, while Singapore's Temasek, which holds a 25% stake in Watsons, was seeking to exit its investment during the IPO. This represents the second time the listing has been delayed, with the first postponement occurring during the COVID-19 pandemic.
Key Points
- CK Hutchison initially began evaluating investor appetite for Watsons Group's IPO earlier this year, targeting completion no later than mid-2024
- The dual listing was planned for London and Hong Kong, aiming to raise approximately $20 billion (HK$156 billion) with a valuation around $30 billion (HK$2,340 billion)
- UBS and Goldman Sachs were selected as lead arrangers for the IPO, while Temasek sought to divest its 25% stake in Watsons during the offering
- Although the IPO received approval from the China Securities Regulatory Commission in October, it still awaited clearance from China's data security regulator, contributing to the delay
- Watsons operates 12 retail brands across 17,042 stores globally, with mainland China store count declining 11% due to closure of low-traffic locations