CK Hutchison Eyes $30B Valuation for Watson's Q2 IPO

CK Hutchison Targets $30 Billion Valuation for A.S. Watson IPO

CK Hutchison Holdings is aiming for a valuation of approximately $30 billion for the Initial Public Offering of its retail division, A.S. Watson Group. The conglomerate is planning a dual listing in Hong Kong and London, potentially as early as the second quarter.

IPO Overview and Stakeholder Exit

Sources indicate that the conglomerate has begun assessing investor interest, with Goldman Sachs and UBS managing the IPO. The planned flotation would also facilitate an exit for Singapore's state investor Temasek, which holds a 25% stake in the health and beauty retailer. Temasek initially invested in the company in 2014.

Strategic Move and Business Performance

This IPO is part of CK Hutchison's broader strategy to unlock greater value by spinning off its business units. A.S. Watson, which operates over 17,000 stores including Watsons and Superdrug, reported a fiscal 2024 revenue of $24 billion and plans to open 1,000 new stores this year, signaling strong growth potential for prospective investors.

Summary

The successful execution of this dual listing would mark a significant strategic milestone for CK Hutchison. Market participants will closely monitor investor appetite and final valuation details as the target IPO date approaches.

FAQ

Q: What is the target valuation for the A.S. Watson IPO?
A: CK Hutchison is seeking a valuation of around $30 billion.

Q: When is the IPO expected?
A: The dual listing in Hong Kong and London is planned for as soon as the second quarter of the year.

Source: Investing.com