French L'Occitane in $708 mln Hong Kong IPO

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Reuters

Cosmetics retailer L'Occitane International S.A. plans to raise up to $708 million in a Hong Kong initial public offering, a source close to the deal said on Sunday night.

L'Occitane, which manufactures products including almond and olive-based creams would be the first French company to list in Hong Kong.

The company was not immediately available for comment. The source has direct knowledge of the offering but was not authorised to speak on the record about the deal.

The company would be the second, non-Asian business to list in Hong Kong behind Russia's RUSAL (0486.HK)

Based in Manosque, a small town in Provence in the south of France, the company is selling 364 million shares, or 25 percent of its enlarged share capital, at a price range indicated between HK$12.88 and HK$15.08 per share, the source said.

CLSA, HSBC (0005.HK) (HSBA.L) and UBS (UBSN.VX) are underwriting L'Occitane's deal.

L'Occitane, which will kick off a formal marketing roadshow on Monday, is set to start its Hong Kong retail public offering on April 26, with a trading debut scheduled on May 7, the source said.

L'Occitane, majority owned by its chairman, Reinold Geiger, plans to use the proceeds to open new stores globally and increase production capacity.

L'Occitane has a presence in over 80 countries, of which the three largest markets -- Japan, the United States and France -- accounted for 55 percent of net sales in 2009. The company plans to penetrate further into high growth emerging markets, including China, Brazil and Russia.

UBS expects the company to increase net profit 30 percent to 78 million euros in 2010, and a further 11.5 percent rise to 87 million euros in 2011, boosted by faster network expansion.

CLSA, HSBC (0005.HK) (HSBA.L) and UBS (UBSN.VX) are underwriting L'Occitane's deal.

(US$1=HK$7.75)

(Reporting by Kennix Chim, Editing by Michael Flaherty and Elaine Hardcastle)