Fosun International Ltd. has chosen investment banks to manage a planned Hong Kong initial public offering of its holiday resort business, Club Med SAS, according to people familiar with the matter. The move signals Fosun's intention to unlock value from the premium vacation brand it acquired years ago.

Selecting underwriters represents a key milestone in taking the French resort operator public in Hong Kong. This process typically involves choosing banks with strong regional expertise and investor relationships to structure the deal and market shares to institutional investors.

The IPO could provide Fosun with fresh capital while allowing public investors to gain exposure to the upscale travel segment. Club Med operates luxury resorts globally and has benefited from recovering demand for international travel following pandemic restrictions. A successful listing would mark another major transaction in Hong Kong's equity markets.

For Fosun, divesting a partial stake in Club Med through public markets could help reduce debt levels while maintaining operational control. The Chinese conglomerate has been streamlining assets and focusing on core businesses amid challenging market conditions.