- Seeks U.S. listing to increase liquidity
- Timing of dual listing not yet determined
- Proceeds to fund operations, capex, possible acquisitions
Feb 13 (Reuters) - Luggage maker Samsonite said on Friday it is seeking a dual listing on a U.S. stock exchange in a bid to increase its exposure to investors in more markets and increase liquidity in the United States.
The owner of the American Tourister and Tumi luggage brands said the potential listing would depend on global market and other conditions.
It said the number of American depositary shares that are expected to be issued under the listing would not exceed 9.97% of total shares.
The issue price of shares would not be more than a 15% discount to the stock's last close before the underwriting agreement for the listing is signed, the company added.
A dual listing in the U.S. would make the company's shares more accessible to U.S. and global investors and increase the overall trading volume in its shares, Samsonite said.
The timing and manner of the dual listing is not yet determined, the company said, adding that it is also seeking shareholder approval.
Any proceeds from the potential listing will be used to cover operating expenses, capital expenditures, the repayment of debt and financing possible acquisitions, the company said.
In 2024, the Hong Kong Stock Exchange-traded company said it planned to pursue a dual listing. The U.S. would be the likely venue for the listing, Reuters reported at the time, citing two people familiar with the situation.
Samsonite also explored a take-private deal earlier in 2024 and had held discussions with advisers and investors.
Pent-up demand for new listings and a strong pipeline of high-profile private companies such as Elon Musk's SpaceX are setting the stage for what could be a breakout year for the U.S. initial public offering market.
Reporting by John Biju in Bengaluru; Editing by Tasim Zahid and Maju Samuel
Source: Reuters