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Samsonite’s IPO trouble could impact Prada’s pricing
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JEREMY HOBSON: Now to the flurry of companies going public right now. The American Luggage maker Samsonite joined the list today. But its initial public offering isn’t happening in New York. It’s happening In Hong Kong.
The BBC’s Andrew Wood tells us why.
ANDREW WOOD: The city’s had the world’s hottest stock market for IPO’s over the past two years. But investors are increasingly worried about economic trouble in China.
Timothy Parker is the chief executive of Samsonite, but he’s not concerned about the company’s prospects.
TIMOTHY PARKER: I think there are price pressures in China but certainly we’re not seeing any reduction in the level of growth of our sales at the moment. And of course, you know everybody in China is travelling more and more, and every time they travel they need, guess what? Luggage.
Samsonite’s disappointing debut raises questions about Prada’s Hong Kong IPO next week. The Italian maker of luxury goods is raising more than $5 billion through its Hong Kong flotation.But some local investors worry that they’ll have to pay Italian tax on dividends and profits if they sell the shares, as there’s still no tax treaty between Hong Kong and Rome.
In Hong Kong, I’m the BBC’s Andrew Wood for Marketplace.