CK Hutchison targets $30 billion valuation for retail unit's Q2 IPO, sources report

• Goldman Sachs and UBS are advising on the IPO, which could raise $2 billion and aims for completion by mid-2026
• A.S. Watson reported $24 billion in fiscal 2024 revenue and plans to open 1,000 new stores in 2025, expanding in the Middle East and Southeast Asia
• The listing is part of CK Hutchison's broader strategy to spin off units for value extraction, including an ongoing $30 billion sale of its ports business to a BlackRock-led consortium

CK Hutchison Targets $30 Billion Valuation for A.S. Watson IPO

Key Transaction Details:

Hong Kong conglomerate CK Hutchison Holdings is pursuing a $30 billion valuation for its retail unit A.S. Watson Group through a dual listing in Hong Kong and London, targeting completion by Q2 2026. Goldman Sachs and UBS are advising on the IPO, which could raise approximately $2 billion according to previous reports.

Major Stakeholder Movement:

Singapore's Temasek, holding a 25% stake acquired in 2014 at a $22 billion valuation, is seeking a complete exit through this offering. Temasek previously attempted to sell its position in 2019 without success.

Company Profile:

Established in 1841, A.S. Watson operates health and beauty chains including Watsons and Superdrug across 31 markets with over 17,000 stores. The company reported fiscal 2024 revenue of $24 billion and boasts 180+ million loyalty members. Plans include opening approximately 1,000 new stores in 2026, with expansion focused on the Middle East and Southeast Asia.

Financial Performance:

CK Hutchison's retail division generated HK$99 billion ($12.7 billion) in revenue for H1 2025, up 41% year-over-year. EBITDA reached HK$13 billion, rising 19% from the prior year period.

Strategic Context:

The IPO aligns with CK Hutchison's broader strategy to unlock value through unit spin-offs and separate listings. The conglomerate, founded by billionaire Li Ka-shing, is simultaneously completing a sale of its ports business to a BlackRock-led consortium and MSC, though Beijing has raised security concerns requiring inclusion of a Chinese investor.

Market Implications:

This represents one of the year's largest anticipated IPOs, testing investor appetite for Asian retail amid regional expansion strategies.