CK Hutchison seeks US$30 billion valuation for retail unit Watson Group’s Q2 IPO: sources

[HONG KONG/SINGAPORE] Hong Kong conglomerate CK Hutchison Holdings is seeking a valuation of around US$30 billion for retail unit AS Watson Group’s listings in Hong Kong and London as soon as the second quarter, two people with knowledge of the matter said.

CK Hutchison has started gauging investor interest for the float, one of the people said. The ports-to-telecoms group is seeking to complete the dual listing by the middle of the year, the other person said, adding that the timetable is fluid.

Goldman Sachs and UBS are working on the planned IPO, the two sources said, declining to be named as the information is confidential. AS Watson could raise US$2 billion in the IPO, according to previous media reports.

Temasek Holdings, which holds a 25 per cent stake in the health and beauty retailer, is seeking to exit its investment in the IPO, said the sources.

CK Hutchison and AS Watson did not immediately respond to requests for comment.

Temasek, Goldman Sachs and UBS declined to comment.

Established in 1841, AS Watson operates health and beauty retail chains including Watsons and Superdrug across Asia and Europe. It has more than 17,000 retail stores in 31 markets, its website shows.

In a press release on Thursday (Jan 15), AS Watson said it has more than 180 million loyalty members and plans to open about 1,000 new stores this year.

It has been expanding in newer markets such as the Middle East and also growing its presence in South-east Asia, its websites showed.

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Temasek invested about US$5.7 billion in the company in 2014, which the two sources said valued it at around US$22 billion. It attempted to sell the stake in 2019, but a deal did not materialise.

CK Hutchison was founded by Hong Kong billionaire Li Ka-shing. In its Thursday release, AS Watson said its fiscal 2024 revenue was US$24 billion.

CK Hutchison’s retail business, of which AS Watson is an anchor asset, reported HK$99 billion (S$16.4 billion) in revenue for the first half of 2025, up 41 per cent from a year earlier. The business’ earnings before interest, taxes, depreciation and amortisation reached HK$13 billion for the same period, up 19 per cent from a year earlier.

The IPO plan comes as CK Hutchison weighs its strategic options, including spinning off units and listing them separately to extract more value. The group has been considering listing global telecommunications assets, Reuters reported in March last year.

It is also in the process of completing a US$22.8 billion sale of its ports business to a consortium led by BlackRock and Italian Gianluigi Aponte’s family-run shipping firm MSC.

The group engaged in talks to include a Chinese investor in the consortium after Beijing voiced security concerns about the sale. REUTERS