Is Graff Seeking $1 Billion IPO?

Laurence Graff wants to raise capital to buy more multi-million dollar diamonds, such as the $50 million pear-shape diamond seen holding here

(IDEX Online News) – Graff Diamonds, one of the world's leading high-end jewelry brands, is planning to go public in Hong Kong next year, according to a Financial Times report. The company is interested in raising capital to expand in Asia.  

Graff is planning an initial public offering that could raise $1 billion, according to the report based on people involved in the deal.

A decision to float in Hong Kong is not final, however it is clear that the company wants to open new stores in China and for that needs to expand its inventory.

Graff is aiming at a “much more aggressive roll-out of stores in China and other parts of the world, which it could not fund autonomously”, said a person familiar with the listing plans.

Hong Kong is also the site of some of the most notable diamond auctions, where Graff has successfully bid on a number of exceptional diamonds.

Graff declined to comment.

Large diamond companies are preparing themselves for a future of continued growing demand and declining supplies. In light of that should be seen Alrosa's planned IPO and Anglo American's takeover of De Beers.

At the same time, Graff is increasing his holding in diamond miner Gem Diamonds, which is reportedly considering at least one merger if not two, with early stage African and Canadian mining operations.