Samsonite shares tumble in Hong Kong as surprise dual-listing plan douses take-private speculation
- Luggage maker is exploring listing its shares on a second stock exchange, after months of market speculation about a privatisation plan
- The stock fell 9 per cent as of 1.40m in Hong Kong in reaction to the news, giving the firm a market value of HK$40.6 billion (US$5.2 billion)
The firm said a dual-listing plan would increase its stock liquidity and reach investors in markets that are an important part of its network and growth drivers for its business, according to a stock exchange filing on Friday. The potential listing venues were not disclosed.
“After conducting a preliminary review of potential paths forward to enhance value for shareholders, the board determined to focus on pursuing a dual listing,” the company said. “The Asia market continues to be incredibly important for the group’s core brands.”
Samsonite reported a 28 per cent surge in sales last year to US$3.68 billion while earnings jumped 33 per cent to US$417 million, as a boom in post-Covid travel underpinned demand for its products. The firm stepped up marketing across all regions to capitalise on the recovery in tourism worldwide, chairman Tim Parker said in the March 13 report to shareholders.
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Net sales in Asia rose by 20 per cent in 2023 compared with 2019, with business in mainland China fully returning to pre-pandemic levels, he added. Net sales in Europe and Latin America rose by 26 per cent and 72 per cent, respectively, from their levels in 2019. Those in North America delivered 2.3 per cent more.
Samsonite shares tumbled about 7 per cent to HK$28.50 on Friday, trimming its gain this year to 11 per cent. The dual listing plan likely has doused market speculation since last year about the luggage maker being taken private, the fuel behind its 17 per cent gain over the past 12 months.
