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Samsonite says it plans to pursue a dual listing beyond Hong Kong

Published 22/03/2024, 11:38 am
© Reuters.
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Investing.com-- Luggage maker Samsonite International SA (HK:1910) said on Friday that its board had authorized plans to seek a dual listing beyond its Hong Kong markets, although the move was still in a nascent stage. 

The Luxembourg-based, Hong Kong-listed company said in a press release that it was considering a dual listing model. But Samsonite did not offer any details on when and where it would list its shares, stating that considerations for the move were still in early stages. 

Samsonite’s announcement comes after media reports dating back to August 2023 said the firm was considering a dual listing. Recent reports also showed that the firm was considering going private.

Friday’s announcement also contrasts earlier comments from Samsonite CEO Kyle Gendreau that the firm had no plans to consider a secondary listing. 

“This initiative is intended to build on the strong base of investor support the Company has established on the Hong Kong Stock Exchange. The Asia market continues to be incredibly important for the Group’s core brands,” Samsonite said in a press release. 

The buzz over a secondary listing or privatization comes amid growing concerns over regulatory ructions between the U.S. and China, with multinational firms listed in China fearing potential sanctions from Washington. 

Samsonite had listed in Hong Kong in 2011- one of the first major multinationals to do so, as it sought to be closer to its biggest market.

The firm’s earnings have so far remained robust, having also benefited from a rebound in Chinese travel demand over the past year. 

But fears of a growing trade war between the U.S. and China remain a point of concern. Recent sparring over artificial intelligence technology saw Micron Technology Inc (NASDAQ:MU) and NVIDIA Corporation (NASDAQ:NVDA) lose access to one of their biggest markets. 

China’s economy is also grappling with a pronounced slowdown in economic growth- a trend that could hurt future earnings for the luggage maker. 

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