London-based luxury brand jeweller Graff Diamonds has now, according to market sources, been given the go-signal from Hong Kong stock exchange regulators to raise capital in a public offering.

This follows other spectacular listings of upscale brand names, such as Italy’s Prada in June last year and Hong Kong’s Chow Tai Fook Jewellery in December.

The listing approval is limited to a maximum of up to US$1 billion – the highest figure so far this year. With the exception of Japan, this will also be the biggest issue of the year to date in Asia.

The entry of Graff Diamonds onto the Hong Kong stock exchange will be welcomed by brokers as a counterweight against the influx of listings by mainland companies. Its strong market position as a maker and retailer of jewellery for high-profiled names among royalty, media celebrities and business leaders is another plus for this entry.

General manager of AMTD Financial Planning, Kenny Tang Sing-hing, said Graff Diamonds has a unique business model in terms of the rarity of its stones and its scope of business, which covers both production and retail of jewellery pieces.

The listing reflects the global importance now taken by the Chinese luxury goods market. It also reflects the high importance placed by Chinese on jewellery as an investment.

The issue will bolster Graff Diamonds’ market situation. It already has a presence in Hong Kong, with a store in the Peninsula Hotel and with another store opening underway. Additional outlets this year on the mainland, in Hangzhou and in Macau, will be stepping stones for further expansion in the Chinese luxury market.

Graff was established by the dealer Laurence Graff in 1960. He says that sales are currently split evenly between Asia, Europe and the US. Among Graff’s latest outstanding acquisitions is a 24.78 carat pink diamond bought at an auction for Swiss francs 45.4 million (HK$386.5 million or US$49.03 million).

GB