Fragrance expert to list in Fragrant Harbour

L'Occitane, a French company that makes and sells cosmetics and skincare products, has started investor education for a Hong Kong initial public offering (IPO) of up to $700 million. The company has chosen the Hong Kong bourse over Paris, confirming its determination to make the most of the strong growth in the region.

And given that the Chinese word for Hong Kong translates into "fragrant harbour" in English, what better place to list for a company that makes a living from selling fragrant beauty products.

If successful, L'Occitane will become the first French company to list on the Hong Kong stock exchange, and will make investors and analysts turn their noses towards the lavender, olive and essential oils planted in the Provence region of Southern France, which are the major ingredients of the company's products. L'Occitane's production facilities are based in the same region.

The investor education, which began on Wednesday this week, is believed to be relatively easy since the French brand is well-known and Asian tourists are fascinated by the scenery of Provence, which is a popular holiday destination. The deal is being arranged by CLSA, HSBC and UBS.