(Reuters) – Luggage maker Samsonite International on Friday said it plans to pursue a dual listing in addition to its listing on the Hong Kong Stock Exchange to boost the liquidity of its shares and attract investors in more markets.
Samsonite did not provide details of the exchanges it is considering for a second listing, saying “the pursuit of a dual listing is at an early stage.”
The United States could be a likely venue, according to two people familiar with the matter.
Samsonite joins global names such as beauty chain L’Occitane and fashion house Prada (OTC:) in seeking options outside Hong Kong, where share prices have fallen over the decade as a boom in private wealth has convinced non-Asian brands to raise their profile in the market . region.
The company, which was founded in the US in 1910 and also owns luggage brands American Tourister and Tumi, said the additional listing will allow it to reach investors in markets that are an important part of its global presence and drivers of growth for its business.
Earlier this year, Samsonite was considering going private and had discussions with advisers and investors, Reuters reported.
The company said its board of directors decided to focus on pursuing a dual listing after preliminary consideration of potential avenues.
“The Asian market continues to be incredibly important for the group’s core brands and the company looks forward to continued successful development of its business here and in other regions of the world,” Samsonite said in a statement.
Asked whether Samsonite would consider a U.S. listing, the company said in an emailed response to Reuters that it had nothing to add beyond Friday morning’s announcement.
“We will make further announcements in accordance with applicable laws and regulations when appropriate,” a company spokesperson said in an email.
Samsonite debuted on the Hong Kong Stock Exchange in 2011 as companies such as L’Occitane and Prada wanted to raise their profile among Asian consumers and appeal to the growing number of wealthy consumers in the region, especially China.
But valuations of Hong Kong-listed companies have fallen in recent years amid the financial hub’s prolonged recession following pro-democracy protests in 2019, not helped by China’s slowing economy and tensions with the United States.
L’Occitane and Prada have since considered options, including additional listings, to attract more investor interest from around the world.
Chinese billionaire entrepreneur and Olympic champion Li Ning is considering taking his eponymous sportswear company out of the Hong Kong Stock Exchange, Reuters reported on March 12.
Samsonite shares are up 19.22% year-to-date on a rebound in tourism in Asia, with its market capitalization at $5.69 billion at the end of Thursday, LSEG data showed.
Samsonite shares fell about 7% on Friday morning, compared with a 1.7% fall.