new-world-unit-offers-ipo-shares-at-a-discount-to-peers

New World unit offers IPO shares at a discount to peers

The Mainland department store operator readies the institutional roadshow for its $302 million Hong Kong listing.
New World Department Store has set the price range for its initial public offering at a level which will allow it to raise up to HK$2.35 billion $302 million, while providing an attractive entry point for investors who are keen to tap into the Chinese retail sector.

The department store operator is offering its shares at a price ranging from HK$4.80 to HK$5.80, which implies a valuation of 23.1 to 27 times its projected earnings for the fiscal year to June 2008, sources say. This compares with a 2007 price-to-earnings multiple of 42.4 times for Parkson Retail Group and 37.5 times for Golden Eagle Retail Group, according to Bloomberg data. Both...
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