CK Hutchison Holdings Ltd is setting its sights on a $30 billion valuation for its retail unit, A.S. Watson Group, as it prepares for listings in Hong Kong and London, likely by the second quarter of this year.
The conglomerate has begun testing the waters for investor interest, according to insider information. The diverse group, which operates in sectors from ports to telecommunications, aims to complete this dual listing by mid-year, although the timeline remains flexible.
Goldman Sachs and UBS are collaborating on the anticipated IPO, with sources requesting anonymity due to confidentiality. Reports indicate that A.S. Watson could potentially raise $2 billion through this offering.
Temasek, a major stakeholder with a 25 percent share in the health and beauty retailer, intends to exit its investment through the IPO, according to the insiders.
As of now, CK Hutchison and A.S. Watson have not released any comments in response to inquiries.
Temasek, along with Goldman Sachs and UBS, has opted not to comment.
Founded in 1841, A.S. Watson manages prominent health and beauty retail chains like Watsons and Superdrug across Asia and Europe. Its portfolio boasts over 17,000 retail stores spanning 31 markets, as highlighted on its website.
In a recent release, A.S. Watson announced it has amassed more than 180 million loyalty members and has ambitions to open around 1,000 new stores this year.
The retailer continues its expansion into emerging markets, such as the Middle East, while strengthening its foothold in Southeast Asia.
Temasek made a significant investment of approximately $5.7 billion in A.S. Watson in 2014, valuing the company at around $22 billion at that time. Although it attempted to divest its stake in 2019, no agreement was finalized.
CK Hutchison was founded by the prominent Hong Kong billionaire Li Ka-shing. In its Thursday release, A.S. Watson disclosed its fiscal 2024 revenue is projected to be $24 billion.
The retail division of CK Hutchison, where A.S. Watson serves as a key asset, reported revenue of HK$99 billion ($12.70 billion) for the first half of 2025, marking a 41 percent increase from the previous year. The division’s earnings before interest, taxes, depreciation, and amortization reached HK$13 billion, seeing a rise of 19 percent from the prior year.
This IPO initiative aligns with CK Hutchison’s broader strategy, which includes evaluating options to spin off various units to uncover additional value. Discussions have also been held regarding the potential listing of global telecommunications assets, as reported by Reuters in March of last year.
The conglomerate is in the midst of finalizing a $22.8 billion sale of its ports business to a consortium led by BlackRock and Gianluigi Aponte’s family-run shipping firm, MSC.
Considerations are being made to bring a Chinese investor into the consortium after security concerns regarding the sale were voiced by Beijing.
