Sun Art targets $1.1bn IPO in Hong Kong

Sun Art Retail Group, a Chinese hypermarket operator, is targeting as much as US$1.1 billion in a Hong Kong initial public offering, despite a dip in global equity markets that is forcing numerous companies to delay or shelve their IPO plans, Reuters reported. Sun Art is a joint venture between Taiwanese conglomerate Ruentex Group and Group Auchan SA, a privately-held French retailer. The company plans to sell 1.14 billion shares at a range of between HK$5.65-7.20 (US$0.72-0.92) each. About 40% of the IPO will be made up of nine cornerstone investors – including sovereign wealth fund Government of Singapore Investment Corp – which will pay a combined US$420 million. Sun Art, which started pre-marketing of the IPO on Monday, plans to use half of its IPO proceeds to open new stores in China.