No shares will be issued and no capital will be raised through the listing, but Fast Retailing said it decided to offer the secondary listing as a way to “further improve the Company’s exposure to investors and customers in the rapidly growing Asian market including China,” according to a statement.
Listing without issuing new shares, or “listing by introduction,” has been popular for purposes of branding in Hong Kong specifically, as it is the hub of the Asian financial market.
The decision will also give international investors an opportunity to put money into the company’s Hong Kong dollar-denominated securities and to demonstrate its commitment to, and focus on, business in Asia.
The listing is planned for March 15, 2014 pending formal approval. Fast Retailing noted that even following formal approval, they may opt to postpone the listing depending on the present business environment and market conditions.
Shares of Fast Retailing were down 1.6 percent as of midday Monday.