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Shanghai Yuyuan Tourist Mart Group Co., which has operations spanning jewelry stores to cultural sites, is contemplating a second listing in Hong Kong, according to people familiar with the matter.
The company, already listed in Shanghai, may seek to raise more than $300 million in an offering, the people said, asking not to be identified because the matter is private. Considerations are ongoing and no concrete decisions have been made, the people said.
Representatives for Shanghai Yuyuan and Fosun didn’t immediately respond to requests for comment.
Shanghai Yuyuan’s businesses span retail, fashion, consumer goods and cultural tourism. It’s controlled by tycoon Guo Guangchang via Shanghai Fosun High Technology Group Co., Shanghai Fosun Industry Investment Ltd. Co. and other Fosun-affiliated entities acting in concert.
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The company was formed in the 1980s as an operator of shops in Yu Garden, a popular tourist landmark near the City God Temple in the old city of Shanghai. Yu Garden dates back to 1559, according to its website.
Guo is striking on a series of strategic moves to consolidate his hospitality empire. Fosun Tourism Group, the owner of luxury resort chain Club Med SAS, offered to buy back its Hong Kong-listed shares from minority holders as it seeks to boost growth as a private company.
Several mainland-listed companies have listed shares in Hong Kong or are exploring the possibility, not least the world’s biggest electric-vehicle battery maker, Contemporary Amperex Technology Co. Ltd. Others include Huawei Technologies Co. partner Seres Group Co., Eastroc Beverage Group Co., and condiment maker Foshan Haitian Flavouring & Food Co., Bloomberg News has reported.
Shanghai Yuyuan’s mainland-listed shares are down about 6% this year, giving the company a market value of 23.5 billion yuan ($3.2 billion). Bloomberg reported earlier this month that Shanghai Yuyuan was considering raising up to 300 million yuan via short-term bonds. The company’s net income was 1.16 billion yuan in the first nine months of last year on 36.1 billion yuan in revenue.
By Dong Cao and Jackie Cai
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