King Power International Group
Situational Overview
King Power approached HFG to create a going public model that avoided the risks of the IPO. The objectives were to establish a public trading platform in the US to establish global cache to enhance valuation. By doing so, capital raising and acquisitions could be done on more favorable terms. The client did not immediately require capital as it simply needed a strategy for becoming a publicly listed company.
Transaction Highlights
- HFG created going public model
- HFG coordinated structure of going public vehicle
- King Power completed combination transaction gaining 99% control of a public vehicle
- HFG facilitated closing of a $2 Million funding transaction 60 days after King Power is public
- King Power listed on the American Stock Exchange
About The Client
Founded in 1989, the King Power International Group is one of the world’s largest operators of duty-free stores. It’s duty-free shopping mall in Bangkok’s central business district, alone covers more than 130,000 square feet of real estate. There are an additional nine other branches in each of Thailand’s biggest airports, and shops in major tourist destinations throughout the country. In 2015, King Power transitioned into the online retail market, as well selling both duty-free and duty-paid merchandise.
Outcome
King Power completed a combination transaction with Immune America, Inc. As a result of the combination King Power became a SEC reporting company and shortly thereafter the company was listed on the American Stock Exchange.
The going public transaction was completed in 1998 at which time KP had annual revenues of approximately $72 Million. When KP went private in 2003 the client had revenues of approximately $172 Million. KP was required to return to private status to maintain its operating license in Thailand.