* Chow Tai Fook names seven banks for IPO - source
* IPO could raise about $3 billion - IFR
(Adds full list of banks, changes sourcing in lede)
By Elzio Barreto and Fiona Lau
HONG KONG, May 24 Jewellery retailer Chow Tai
Fook, controlled by billionaire Cheng Yu-tung, has hired
Deutsche Bank AG (DBKGn.DE), Goldman Sachs Group Inc ,
HSBC Holdings Plc and JPMorgan Chase & Co
as the main underwriters for its Hong Kong IPO, said a
source familiar with the matter.
The company could raise $3 billion from the initial public
offering, slated for the first quarter of 2012, Thomson Reuters
publication IFR reported late on Monday.
The retailer had also hired Citigroup Inc , Credit
Suisse Group AG and UBS AG , to underwrite
the offer, the source told Reuters on Tuesday.
The source was not authorised to speak to media as the
mandates had not yet been made public. Chow Tai Fook officials
were not immediately available for comment.
Consumption of luxury items in China, the world's
second-largest economy, has surged at double-digit rates in
recent years as a new class of consumers snaps up jewellery from
Tiffany & Co , ties and scarves from Hermes International
SCA and handbags from LVMH Moet Hennessy Louis Vuitton
Chow Tai Fook, founded by Cheng's father-in-law Chow Chi
Yuen in Guangzhou in 1929, has 1,400 stores, mostly in greater
China. It competes with domestic players, such as Luk Fook
Holdings (International) Ltd and Emperor Watch and
Jewellery Ltd , and foreign brands such Tiffany.
"We aim to open 200 stores every year, with 90 percent of
them in China," Alan Chan, Chow Tai Fook Jewellery's global
branding director, told the Reuters Global Luxury Summit in Hong
Kong on Monday. [ID:nL3E7GN1JX]
China would likely account for 20 percent of the global
luxury market by 2015, with spending expected to nearly triple
to $27 billion from about $10 billion in 2009, according to
consulting firm McKinsey & Co.
(Editing by Denny Thomas and Chris Lewis)