CK Hutchison denies Watsons IPO decision as reports flag $2B delay

CK Hutchison said it has made no decision on an AS Watson IPO, responding to reports of a $2 billion listing.

"CK Hutchison has not yet made any decision regarding a potential listing of AS Watson," the company said in a statement, without elaborating.

The Financial Times reported July 18 that AS Watson, the Hong Kong-based health and beauty retailer that owns UK chain Superdrug, was considering delaying its planned dual listing in London and Hong Kong until 2027 because of regulatory complications in Asia. The IPO was expected to raise about $2 billion and value the business at roughly $30 billion, the FT reported.

A Watsons listing would be one of the largest retail IPOs in Hong Kong this year, adding to a boom that has pushed the city toward a six-year high for proceeds. The deal would also offer Singapore's Temasek, which owns almost 25 percent of AS Watson, a route to exit the stake it bought for close to $6 billion in 2014.

AS Watson operates more than 17,000 stores across 12 retail brands in 31 markets, including Superdrug and Savers in the UK and Watsons and Rossmann across Europe and Asia. The company is also exploring a sale of French perfume chain Marionnaud, according to a filing. People familiar with Hong Kong's listing rules told the FT that the asset sale could represent a "material change" requiring AS Watson to refile its listing materials.

CK Hutchison shares closed at HK$70.50 on Monday, down 0.4 percent. The stock has gained 33 percent this year.

The denial creates uncertainty around what would be one of Hong Kong's marquee listings. Investors will watch for any further disclosure from CK Hutchison on the timing and structure of a potential Watsons float.

This article is for informational purposes only and does not constitute investment advice.