CK Hutchison Targets $30 Billion Dual Listing for A.S. Watson

According to sources familiar with the transaction, the Hong Kong-based multinational CK Hutchison Holdings Ltd is preparing for a dual listing of its retail division, A.S. Watson Group, on the Hong Kong and London stock exchanges. The conglomerate is reportedly targeting a valuation of approximately $30 billion for the unit, with the initial public offering (IPO) potentially occurring as early as the second quarter of 2026. While the schedule remains subject to change, the group has initiated preliminary discussions to assess investor appetite. Financial institutions Goldman Sachs and UBS have been appointed to manage the offering, which previous estimates suggest could raise roughly $2 billion in capital.

The proposed IPO serves as an exit strategy for Singapore’s sovereign wealth fund, Temasek, which currently maintains a 25% equity stake in the retailer. Temasek initially invested approximately $5.7 billion in A.S. Watson in 2014—a deal that valued the company at $22 billion—and previously sought to divest its holdings in 2019 without success. A.S. Watson, a historic entity established in 1841, operates an extensive global network of over 17,000 stores across 31 markets, including prominent brands such as Superdrug. The company recently reported fiscal 2024 revenues of $24 billion and continues to expand its footprint in Southeast Asia and the Middle East, with plans to launch an additional 1,000 outlets this year.

This strategic divestment aligns with a broader restructuring effort by CK Hutchison to unlock shareholder value through subsidiary spin-offs and asset sales. For the first half of 2025, the group’s retail division demonstrated robust growth, reporting a 41% increase in revenue to HK$99 billion and a 19% rise in EBITDA. In addition to the retail listing, the conglomerate is finalizing a $22.8 billion sale of its port operations to a consortium involving BlackRock and MSC, while navigating regulatory considerations regarding Chinese investment participation. Neither CK Hutchison nor the involved financial institutions have issued official comments regarding the confidential IPO proceedings.