Rt-Mart Plans IPO In Hong Kong

Taiwanese supermarket retailer Rt-Mart reportedly plans to raise up to USD800 million through an initial public offering in Hong Kong.

According to two anonymous insiders, the retail will mainly sell the new shares in Hong Kong and it has invited investment banks to present proposals for the IPO, aiming to raise capital of between USD600 million and USD800 million later this year.

Chloe Wu, an analyst from Hong Kong Fubon Securities, told local media that RT-Mart may use the financed capital to buy land for its new stores, because it only owns 20% of its stores in China.

Yoshihiko Kawashima, a consumer analyst from Japan's Daiwa Securities Group, said in a note to clients that RT-Mart will open 35 new stores in the next three years and by 2012, the company will have 210 stores.

Rt-Mart, which is 33% owned by the French retailer Auchan, is the largest chain supermarket group in China by market share and its sales in the Chinese market is increasing.