CK Hutchison Holdings Ltd is eyeing a significant valuation of approximately $30 billion for A.S. Watson Group’s retail listings, slated for Hong Kong and London as early as the second quarter, according to sources familiar with the undertaking.
Investor interest is currently being evaluated as CK Hutchison aims to finalize the dual listing by mid-year, with the timeline remaining adaptable, one source noted.
Goldman Sachs and UBS are at the helm of this anticipated IPO, with the two insiders opting to remain anonymous due to the sensitive nature of the information. Reports suggest that A.S. Watson might generate $2 billion from the IPO.
Temasek, the sovereign wealth fund of Singapore, which owns a 25 percent stake in the company, is looking to divest its investment through this IPO, according to the same sources.
Requests for comments from CK Hutchison and A.S. Watson were not returned promptly.
Similarly, Temasek, Goldman Sachs, and UBS refrained from commenting on the situation.
Founded in 1841, A.S. Watson operates notable health and beauty retail brands, such as Watsons and Superdrug throughout Asia and Europe. The company boasts over 17,000 retail locations across 31 countries, as noted on its website.
In a recent press announcement, A.S. Watson highlighted its vast network of over 180 million loyalty members and its plans to launch around 1,000 new stores this year.
The company is not just focusing on established territories but is also making headway into emerging markets like the Middle East, as well as strengthening its footprint in Southeast Asia, according to its online resources.
Temasek initially invested about $5.7 billion into A.S. Watson in 2014, which two sources have indicated attributed a valuation of around $22 billion to the retailer. An attempt to sell this stake in 2019 did not result in a successful transaction.
Founded by the influential Hong Kong billionaire Li Ka-shing, CK Hutchison reported that A.S. Watson achieved fiscal 2024 revenues of $24 billion in its latest communication.
The retail division of CK Hutchison, which prominently features A.S. Watson, reported HK$99 billion (around $12.70 billion) in revenue during the first half of 2025, reflecting a 41 percent increase from the previous year. During this period, earnings before interest, taxes, depreciation, and amortization also surged to HK$13 billion, marking a 19 percent rise from the prior year.
The initiative for an IPO aligns with CK Hutchison’s considerations of strategic alternatives, including the possibility of spinning off various divisions and offering them separately to enhance overall value. Reports from March of the previous year indicated CK Hutchison was also pondering a public offering of its global telecommunications assets.
The company is currently finalizing a noteworthy $22.8 billion divestiture of its ports segment to a consortium led by BlackRock alongside Italian shipping firm MSC, founded by Gianluigi Aponte.
Furthermore, discussions have been initiated to involve a Chinese investor in this consortium, following security concerns expressed by Beijing regarding the sale.
