Chow Tai Fook launches $2.8 billion IPO with upsize option

Chow Tai Fook Jewellery is kicking off the institutional roadshow today for an initial public offering of between HK$15.75 billion and HK$22.05 billion $2 billion to $2.83 billion. The deal size is below the company’s earlier target to raise as much as $4 billion, which is a reflection of the difficult market environment. However, if the demand proves to be robust, Chow Tai Fook will be able to upsize the deal by 20% and if you add a 15% greenshoe as well, the total proceeds could reach $3.9 billion at the top of the range.

This is the same structure that AIA Group used on its IPO...