Investing.com - The world’s biggest cigarette maker, the state-backed China National Tobacco Corp. (CNTC), is reported to be planning to list its international unit in Hong Kong.
The unit, China Tobacco International, is primarily responsible for buying overseas tobacco leaf from countries like Brazil and Canada and sell them to Chinese manufacturers. The international unit only accounts for “a tiny portion” of China National Tobacco’s overall business, according to reports.
Citing an unnamed source, Reuters reported that the listing would raise about $100 million for the unit. The company’s listing document did not give details of how many shares would be issued, or when the listing would take place.
This comes as an unexpected move as the Chinese government is piling more pressure to reduce smoking in public space.
The unit recorded a profit of HK$222.3 million ($28.4 million) for the first nine months ended in September.
CICC and China Merchants Securities are joint sponsors for the IPO.