The Buzz | Fosun Tourism is said to raise USD426 million in Hong Kong IPO

Fosun Tourism Group, a unit of billionaire Guo Guangchang’s drugs-to-insurance conglomerate, raised HK$3.34 billion ($426 million) after pricing its Hong Kong initial public offering at the bottom of a marketed range, people with knowledge of the matter said.

The owner of luxury resort brand Club Med sold 214.2 million shares at HKD15.60 apiece, the people said, asking not to be identified because the information is private. The shares were offered at HK$15.60 to HK$20.00 each.

Fundraising from first-time share sales in Hong Kong has more than doubled this year to $34 billion, according to data compiled by Bloomberg. Babytree Group, also backed by  Fosun International Ltd., raised $217 million in its IPO in the city last month, the data show.

An external representative for Fosun Tourism declined to comment.

Alibaba Group Holding Ltd., Shun Tak Holdings Ltd. and Suchuang Gas Corp. agreed to buy about $49 million of stock in Fosun Tourism’s offering as cornerstone investors, its prospectus shows. The company expects to begin trading Dec. 14.

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