Fosun International Ltd.'s tourism unit applied to list its shares on the Hong Kong Stock Exchange, according to a company filing.
The Chinese conglomerate expects its Fosun Tourism Group unit to float at least 25% of its shares and proposed that the underwriters be granted an overallotment option of up to 15% of the shares initially offered. Following completion of the proposed listing, Fosun will hold no more than 75% of the tourism subsidiary.
Fosun Tourism Group, which controls France-headquartered resort operator Club Med SAS, hopes to raise between $500 million and $700 million in the IPO later in 2018, sources told Reuters. The Hong Kong Stock Exchange approved Fosun International's spin-off of Fosun Tourism in July.
Citigroup, CLSA and JP Morgan are the joint IPO sponsors, according to Reuters.
As of Sept. 4, US$1 was equivalent to 6.84 Chinese yuan.