Belle International and four of its shareholders plan to raise as much as HK$8.6 billion by selling new and existing shares for listing on the main board later this month, sources said.
The international roadshow started yesterday for the sale of 1.39 billion shares in the mainland's largest female footwear retailer, at HK$5.35 to HK$6.20 apiece. That translated to between 27 and 31 times forecast earnings for this year, slightly higher than the industry average of 25 times, one source indicated.
According to a source, LVMH Moet Hennessy Louis Vuitton, the largest luxury-goods maker in the world, has agreed to take a US$30 million stake in Belle, or about 3 per cent of the institutional portion, based on the 90 per cent of the issue allotted to the tranche.
About 83 per cent of the offering is new share issues from the company, and the remaining is being sold by the chairman and three other stakeholders, according to its preliminary listing prospectus.
The sale could allow the four to reap as much as HK$1.5 billion if the shares are priced at the top end.
'The institutional portion has been fully covered within few hours of opening the order book,' the source said.