L'Occitane to raise funds in IPO

Hong Kong - L'Occitane Ltd, a French natural-ingredients beauty company, and its parent may raise as much as HK$5.49 billion ($707 million) in an initial public offering in Hong Kong, said three people with knowledge of the sale.

L'Occitane and L'Occitane Groupe SA plan to sell 364.12 million shares, or a 25 percent stake in the company, at HK$12.88 to HK$15.08 each, said the people, who declined to be identified before a public announcement. Half the shares are new and half are on offer from the parent, they said.

Increased consumer spending and strong economic growth in China, Brazil and India will boost demand for natural ingredients-based cosmetics, L'Occitane International said in a report on the Hong Kong stock exchange's website.