Luggage manufacturer Samsonite International SA is reportedly contemplating a second listing on a US stock exchange in order to expand its investor base. The move is aimed at enticing more US investors to the Hong Kong-traded company, which owns the luxury brand Tumi. Insiders have suggested that a potential listing in the US could also serve as a new source of funding for Samsonite. However, the company has responded by stating that it currently has no intentions of pursuing a secondary listing, although it regularly assesses opportunities in the best interest of its shareholders and the firm.
Samsonite’s shares have seen an 18% rise this year, thanks to a resurgence in tourism in Asia, resulting in a market value of around $4.5 billion. The company raised roughly HK$10 billion ($1.3 billion) in its initial public offering in Hong Kong in 2011. However, Samsonite has struggled to attract investors in Hong Kong, where most listed companies are Chinese-based.
Despite its recent success, Samsonite has faced difficulties attracting investors due to the prominence of Chinese-listed firms in the region. Over the past five years, the average daily trading volume for Samsonite shares amounted to $13 million, significantly lower than the average of $90 million for Li Ning Co., a leading Chinese sportswear manufacturer listed on the Hang Seng Index.
Samsonite has a rich history that dates back to 1910 when it began as Shwayder Trunk Manufacturing in Denver. It introduced its first Samsonite-branded suitcase 29 years later. In 2007, the company was acquired by private equity firm CVC Capital Partners for about $1.7 billion. Samsonite faced financial difficulties in 2009 and sought bankruptcy protection for its US retail division, Samsonite Co. Stores, following the global financial crisis.
Since its listing in Hong Kong, Samsonite has pursued an acquisitive strategy, making several brand acquisitions to expand its portfolio. In 2012, the company acquired High Sierra and Hartmann, followed by Lipault, Speck, and Gregory in 2014. Its most significant acquisition to date was the $1.8 billion purchase of Tumi Holdings Inc. in 2016.
Despite its growth, Samsonite has faced scrutiny in the past. In May 2018, short-seller Blue Orca Capital raised concerns about the company’s accounting practices and corporate governance. The allegations led to a significant decline in Samsonite’s stock price, which ultimately resulted in the resignation of the CEO. However, Samsonite issued a comprehensive rebuttal, refuting any accusations of accounting irregularities or inadequate corporate governance.
While Samsonite continues to weigh its options, a secondary listing in the US could present an opportunity for the company to expand its global presence and attract a broader investor base. Nevertheless, at present, the company has stated that it has no immediate plans to proceed with such a listing.
Useful links:
– Samsonite Official Website
– Samsonite Considers Second Listing in US to Attract Investors – The Wall Street Journal
