BRIEF: Zhou Liu Fu rises in Hong Kong trading debut
Shares of jeweler Zhou Liu Fu Jewellery Co. Ltd. (6168.HK) rose in their Hong Kong trading debut on Thursday, opening up 11% and continuing to rise during the morning session to close up 15% at HK$27.60 by the midday break.
The company sold 46.8 million shares for HK$24 apiece to raise net proceeds of about HK$1.2 billion ($153 million). The public offering for local Hong Kong investors was oversubscribed by 710 times, while the international placement was oversubscribed by nearly 13 times.
Zhou Liu Fu had 4,129 brick-and-mortar stores by the end of last year, including franchised and company-owned outlets. It reported revenue of 5.72 billion yuan ($797 million) last year, up 11% year-on-year, while its profit climbed 7.1% to 710 million yuan.
Zhou Liu Fu’s IPO prospectus discloses that its brand may be vulnerable to counterfeiting or imitation. In fact, since its founding, the company’s Chinese name has been accused of imitating veteran Hong Kong jeweler Chow Tai Fook (1929.HK). Zhou Liu Fu ‘s Chinese name appears to combine elements from both Chow Tai Fook (1929.HK) and Luk Fook Jewellery (0590.HK), another veteran Hong Kong chain.
By Lau Chi Hang
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