Fosun Tourism Group, owner of the French holiday resort chain Club Med, has received listing approval from the Hong Kong stock exchange in an initial public offering expected to raise up to USD 1 billion, according to a source familiar with the deal.
Fosun Tourism, the largest leisure tourism resort group in the world by revenue, will be spun off from parent Fosun International, one of China’s most acquisitive privately-controlled conglomerates, into a separately-listed firm.
The approval means Fosun Tourism could join online parenting firm Babytree Group and online travel agent Tongcheng-eLong Holdings to launch initial public offerings in Hong Kong in November.
JP Morgan, CLSA and Citi are joint sponsors of the listing.
Fosun Tourism plans to use around a fifth of the listing proceeds to further develop its resort business, cultural events, and its performing arts and live entertainment business. It will also build up its digital technology infrastructure.
Around 30% of funds raised will be spent on developing resorts in Lijiang, Yunnan province and Taicang, Jiangsu province. Another 25% has been earmarked for acquisitions and strategic alliances that could expand its “global ecosystem”, the company said in the listing document.
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