Department store owner aims to raise $982m to speed up its expansion plans
Cash-rich Lifestyle International Holdings, owner of the Sogo department store, is to tap the equity market for up to $982.5 million, despite an investment climate dampened by soaring oil prices.
With cash on hand of $1.4 billion as at June, analysts believe Lifestyle International plans to build up its reserves to speed up the expansion of its Sogo stores, in a bid to capitalise on the retail boom.
Sources close to the fund-raising exercise said the company had mapped out an ambitious plan to open more Sogo stores, with a possible third outlet in Tsuen Wan this year. No date for the new store opening was available but it is likely to be over the next several months, sources said.
The company has also said it will accelerate its expansion drive in Macau and on the mainland.
The fund-raiser comes two weeks after Lifestyle International announced that its second Sogo store would open in the Amazon underground shopping centre in Tsim Sha Tsui on September 30. The store, previously home to Teddy Bear Kingdom, required an investment of $100 million.