Samsonite Considering U.S. for Potential Second Listing
An additional listing would increase the liquidity of the company’s shares, expand its global reach and drive business growth
Luggage maker Samsonite 1910 -8.47%decrease; red down pointing triangle is looking at the U.S. as a potential venue for a second listing, tapping investor appetite in a market that has been hitting new highs, according to people with knowledge of the plan.
The potential fundraising could be less than $500 million, one of the people said, adding that these details are yet to be finalized.
“We are in the early stages of this process and have nothing to add beyond what is in the announcement published this morning,” a Samsonite spokesperson said in an email.
Samsonite said earlier Friday that it was planning another listing on a leading stock exchange besides Hong Kong.
An additional listing would increase the liquidity of the company’s shares, expand its global reach and drive business growth, Samsonite said.
Samsonite, the world’s largest luggage maker, was established in 1910 as a trunk manufacturer in Denver.
The company was listed on the Hong Kong Stock Exchange in 2011 and raised $1.25 billion then. Its market capitalization was over $5.5 billion as of Thursday.
Samsonite’s improved business performance, fueled by a resurgence in travel demand following the pandemic, has led to optimism in considering another venue for a listing.
The company’s sales grew 28% to $3.68 billion in 2023, with net profit rising 33% to $417.0 million.
Expectations that the Federal Reserve would cut rates later this year have lifted investor demand for equities, driving U.S. stock indexes to new highs.
However, investors in Hong Kong were disappointed by Samsonite’s plan to pursue a dual listing. The stock was down 9.0% at 27.95 Hong Kong dollars (US$3.57) at midday on Friday.
“While this move may benefit its liquidity and expand investor base in the mid-to-long-term, we expect the share price to react negatively given potential share dilution,” Citi analyst Lydia Ling said in a note.