Raising brand awareness through a stock listing in Hong Kong?
This appears to be a strategy some fashion retailers are pursuing.
US based accessories company Coach is seeking a dual listing of its stock on the Hong Kong Stock Exchange through the issuance of Hong Kong Depository Receipts. The goal — not to raise capital, but to court Chinese investors and consumers.
“This listing, if approved, will raise awareness of the Coach brand among investors and consumers in the China market as well as throughout Asia,” said Lew Frankfort, chairman and chief executive officer. “It also clearly signals the importance of China to Coach—our largest geographic opportunity. Based on our rapid growth, it is clear that the Coach proposition is resonating with Chinese consumers, who are participating in this category in increasing numbers.”
Coach could be the first US issuer to have a secondary listing in Hong Kong. It could happen this year if Coach’s application is accepted.
Other luxury firms like Prada and L’Occitane have pursued the Hong Kong Exchange route to garner greater attention in the coveted Chinese market.