Leading luggage maker Samsonite's decision to pursue a dual listing has sent its shares tumbling by as much as 12% in Hong Kong trading. The company, which owns brands such as American Tourister and Tumi, did not specify which other exchanges it is considering for a secondary listing. However, sources familiar with the matter say the United States is a likely destination.
Samsonite says the dual listing aims to boost share liquidity and reach a wider investor base. The move is still in early stages, but analysts note any new share issuance could dilute existing holdings. While this short-term reaction was expected, the long-term benefits of an expanded shareholder community and higher trading volumes make strategic sense.
Global brands like cosmetics retailer L'Occitane and fashion house Prada have also mulled additional listings beyond Hong Kong in recent times. Valuations on the Hong Kong exchange have softened over the decade as the city's private wealth boom that lured non-Asian firms has cooled off.
Samsonite debuted on the Hong Kong bourse in 2011 to build brand visibility in Asia's fast-growing consumer markets like China. Now over a century since its US founding in 1910, North America remains core to the company while Asia also drives significant growth. A US listing could better reach investors across Samsonite's global footprint and sectors powering its business expansion.
The luggage giant says its board picked the dual listing option after reviewing strategies. Samsonite sees Asia as incredibly important and looks forward to ongoing success worldwide. With travel demand rebounding strongly, the company's portfolio including top-selling brands position it well for continued upside.
