Samsonite (1910) shareholders approved a set of resolutions on Thursday designed to pave the way for a US dual listing, as the Hong Kong-listed luggage maker seeks greater exposure to US investors and improved share liquidity.
The company, whose brands include Tumi and American Tourister, last month said it was seeking a listing that it expected to be via American depositary shares.
Based on a market capitalisation of about US$2.95 billion (HK$23.1 billion) as of Thursday, the approved issuance mandate of up to 138.3 million shares, roughly 10 percent of issued share capital excluding Treasury shares, implies a theoretical maximum deal size of about US$300 million at prevailing market value, although Samsonite has not set a timetable, size or pricing for any US listing.
The timing and structure of any listing had yet to be determined and would depend on market conditions, the company said in February.
Shares of the company have dropped about 16 percent year to date, LSEG data showed.
Under proposed terms, any ADS-related share issuance would be within previously approved dilution limits, while the price could not be at a discount of more than 15 percent to the stock’s close immediately before the signing of the underwriting agreement.
Proceeds from any share sale would be used for working capital and broader corporate needs, including operating expenses, capital spending, debt repayment, share repurchases and possible acquisitions.
Samsonite first said in March 2024 that it would pursue a dual listing after reviewing options to enhance shareholder value.
Its listing would add to momentum to US capital markets, where improving market conditions have encouraged companies such as fast food firm Jollibee Foods and data centre operator DayOne to pursue or prepare US listings.
On Friday, Samsonite reported an increase of 2.2 percent in fourth-quarter sales and higher gross profit from a year ago, supported by stronger direct-to-consumer and non-travel sales, though quarterly profit attributable to shareholders fell 11.6 percent.
Preparations are progressing for a potential US dual listing which Samsonite intends to complete in 2026, as business continues to improve, Chief Executive Kyle Gendreau said in an earnings statement.
Reuters
