Hong Kong—Coach Inc. is reportedly seeking approval from the Hong Kong stock exchange for a listing through an issue of Hong Kong depositary receipts (HDR), perhaps by the first week of November.
The New York-based handbag and accessories company is already listed on the New York Stock Exchange and is believed to be the first U.S. company to seek a second listing in the Hong Kong stock market.
Sales in China Could Reach $1 Billion
In June, Prada SpA launched its IPO on the Hong Kong market raising $2.5 billion. Samsonite International also listed in Hong Kong raising $1.25 billion in June. But Coach stated in May that while it seeks a listing of its shares on the Hong Kong Stock Exchange, the company doesn’t plan to raise extra capital via issuance of the HDRs since the double-listing is more about “marketing than finance.”
Nonetheless, a Hong Kong listing could go a long way in exposing the Coach brand in Asia and Greater China, the fastest growing market for luxurygoods.
Last month, Credit Suisse predicted that Coach would generate $1 billion, or 14% of total sales, from China by 2016. That’s compared with the $187.5 million, about 4.5% Coach earned from sales in its 66 Chinese locations this year.
J.P. Morgan Chase & Co. is handling the deal, according to a report in Dow Jones.