France's L'Occitane readies for Hong Kong IPO: report
Cosmetics group L'Occitane is preparing an initial public offering in Hong Kong, a newspaper reported on Saturday, in a move that illustrates Asia's rising demand for luxury goods.
The France-based company, which sells skincare products in 85 countries, could raise as much as 700 million US dollars in the offering, the Financial Times reported, citing "people familiar with the matter".
The report said the cash could fund an Asian expansion for the company, a private enterprise established in 1976.
"L?Occitane products are viewed in Asia as affordable luxury and a Hong Kong listing makes sense in the context of its China strategy, future growth plans and regional brand recognition," the paper quoted a person close to the company as saying.
L'Occitane had revenues of 731 million dollars in the year to March 2009. The Asia-Pacific region accounts for around 40 percent of global sales for the company, which is planning 40 new outlets in China, the Financial Times said.
The move is part of a trend for high-end retailers battered by financial turmoil in the United States and Europe turning their attention to the burgeoning Asian market, where the vast economies of India and China have continued to post impressive growth rates despite the global downturn.
A listing by L'Occitane would be a boost for the Hong Kong bourse, which said Thursday it was seeking to attract more foreign firms with an interest in tapping into the vast potential of the Chinese market.
Copyright 2010  AFP Global Edition
