Coach Confirms Listing on Hong Kong Stock Market

In Industry News, Reports, What's New by Accessories StaffLeave a Comment

New York—Ending weeks of speculation in the financial markets, Coach Inc., confirmed today that it intends to pursue a dual listing of its shares on the Hong Kong Stock Exchange through the issuance of Hong Kong Depository Receipts.

Shares of Coach Inc. are already traded on the New York Stock Exchange, and Coach reported that it doesn’t plan to raise extra capital via the issuance of Hong Kong depositary receipts, underscoring that the exercise is “more about marketing than finance.”

A Clear Signal About the Importance of China

“We’re very enthusiastic about the prospect of a dual listing on the Hong Kong Stock Exchange. This listing, if approved, will raise awareness of the Coach brand among investors and consumers in the China market as well as throughout Asia,” said Lew Frankfort, chairman and ceo. “It also clearly signals the importance of China to Coach – our largest geographic opportunity. Based on our rapid growth, it is clear that the Coach proposition is resonating with Chinese consumers, who are participating in this category in increasing numbers.”

The company intends to file a listing application with the Hong Kong Stock Exchange, which, if approved, will allow for a planned listing before calendar year-end.

Based on that timing, Coach is believed to be the first U.S. domestic issuer to do a secondary listing in Hong Kong.

But Coach undoubtedly won’t be the last as luxurygoods companies seek a foothold in Asia, particularly the burgeoning luxury market in China. Indeed the Chinese market accounts for about a quarter

Other internationally known and luxury brands have also planned listing in Hong Kong. Prada SpA said earlier this year it will launch its IPO in Hong Kong rather than in its home country, Italy. Samsonite also has indicated it plans to pursue a primary listing in Hong Kong.