Busy with Retail Offerings

Surprised that a tiny city like Hong Kong can find its place on the global map and is dubbed as one of the leading business centers in the world?

Sure, its proximity to the booming Chinese economy plays a significant role in attracting promising startups and ambitious entrepreneurs.

What about China, the country that houses 1.3 billion people, that sees massive economic boom and industry growth? Can you even imagine her potential and what she might become?

Consumerism is accelerating. Retail market is flourishing. According to Euromonitor, China’s department store sales are expected to total 682 billion yuan (or close to US$98 billion) in 2010, representing a 73% jump from the 2005 levels and a compound annual growth rate of around 12%.

Maoye International Holdings is one of the leading departmental store companies in China. It was only natural that the company decided to go public in Hong Kong.

Maoye, owned by Shenzhen’s third-richest man Huang Maoru, recently listed on the Hong Kong Stock Exchange. The company sold its shares for US$0.39 per share, raising $343 million in the offering.

Following on its heels was the IPO of fashion accessories company Artini China Co. Artini raised US$80 million in its offering, pricing its shares at HK$2.22 a pop.

Other retailers are also in the queue for listing their stocks in Hong Kong. Among these is E-Land Fashion China Holdings, China’s fifth largest women’s apparel company. Sports apparel and footwear provider XTEP (China) Co is scheduled to make a debut on the Hong Kong bourse later this month or at the beginning of next month. The company is expected to raise US$300-400 million in the offering.

Last year, the Hong Kong Stock Exchange was the third busiest bourse for IPOs, after London and Shanghai. With the capital-hungry Chinese firms looking towards Hong Kong for listing their shares, the city’s IPO activities are looking fab.