Hong Kong conglomerate Hutchison Whampoa is reported planning to float its health and beauty chain Watsons.

The floatation is expected to raise up to US$10 billion.

The company, owned by Asia’s richest man Li Ka-shing, plans to use the proceeds of the floatation to expand Watsons, which has higher margins than its grocery chain ParknShop.

ParknShop, with 345 stores in Hong Kong, Macau and mainland China, is up for sale for US$4 billion.

Hutchison Whampoa decided to divest the ParknShop to exit the grocery market which it described as mature and growing slowly.

The conglomerate also operates businesses including ports, hotels, telecommunications and infrastructure.