Sun Art raises $1.06bn in IPO

Sun Art Retail Group (6808.HK), a Chinese consumer retail outfit, raised US$1.06 billion in an initial public offering after pricing at the top of its indicative price range on the Hong Kong Stock Exchange on Friday, the Wall Street Journal reported. The company, a joint venture between Taiwan’s Ruentex Group (2915.TT) and France’s Groupe Auchan, will use the new capital to upgrade its 197 megastores and expand its presence in the mainland. Euromonitor International says that Sun Art, while entering the China market later than rivals such as Wal-Mart (WMT.NYSE) and Carrefour (CA.Euronext), has the strongest revenue figures of all the country’s retail megastores. Its success in China’s highly competitive and fragmented megastore market is credited with its exclusive focus on China, lending it a more flexible corporate strategy tailored to local needs.