L'Occitane is a French company which exports 75 percent of its products outside Europe, with the Asia-Pacific region accounting for nearly half of global sales.
According to the Financial Times, the company could raise up to US$700 million through the IPO to fund its expansion in Asia.
The decision to list the company in Hong Kong highlights rising consumer demand in Asia for natural cosmetics and luxury goods.
“For L’Occitane, the hope is that the strength of its brand image and growth prospects in the Far East will command a better stock market rating than in Europe, where the recession and disenchantment with luxury goods could weigh heavily on any share offering,” Timesonline.co.uk said.
L'Occitane posted double-digit annual sales growth in Asian markets, including Hong Kong and Japan, in the two years to March 2009 and plans on expanding its 40 outlets in China.
"A successful listing by L'Occitane would be the first in Hong Kong by a European luxury goods group, and will bolster Hong Kong's claims to be the key market to access growth in the region," the Financial Times said.
Source: The Financial Times, Timesonline.co.uk
