(Yicai) Aug. 31 -- Fosun International plans to bring Club Med back to public markets by spinning off its operator, ClubMed Lifestyle Group, for a Hong Kong initial public offering, as the Chinese conglomerate seeks to fund the French resort brand’s global expansion and optimize its finances.

ClubMed Lifestyle plans to expand its global resort network to about 85 locations by 2030 from 69 now, according to its recent initial public offering application. The proposed listing also comes as Shanghai-based Fosun, whose core businesses span healthcare, tourism, consumer products and financial services, seeks to unlock value from its portfolio and further strengthen its balance sheet.

ClubMed Lifestyle, which operates ski resorts in destinations including the French Alps and Hokkaido as well as beach resorts in the Maldives, Mauritius and Mexico, intends to use the IPO proceeds to open new resorts, upgrade existing properties, strengthen its digitalization and artificial intelligence capabilities, optimize its capital structure, and fund general working capital. The fundraising amount has not been disclosed.

The IPO would mark the latest chapter in Club Med’s decade-long evolution under Fosun. Founded in France in 1950, Club Med is a pioneer in the premium all-inclusive vacation industry and was the world’s largest resort brand by business volume in 2025, according to the listing application.

Fosun’s involvement with Club Med dates back to 2015, when a consortium it led acquired the French company and took it private from Euronext Paris. Club Med was subsequently combined with Fosun’s other cultural and tourism businesses to form Fosun Tourism Group.

The planned spin-off would also bring Club Med’s core business back to Hong Kong’s public market less than two years after Fosun Tourism was taken private. Fosun Tourism listed on the Hong Kong Stock Exchange in December 2018, but Fosun privatized and delisted the unit in March last year after a prolonged decline in its share price.

The IPO-hopeful's profitability has weakened this year despite broadly stable revenue. ClubMed Lifestyle's net profit fell 12 percent to EUR57.1 million (USD66.2 million) in the first half of this year from a year earlier, while revenue was little changed at EUR1.1 billion (USD1.3 billion), according to the listing application.

Fosun’s Financial Overhaul

Since experiencing liquidity pressure in 2022, Fosun has taken a series of steps to strengthen its financial position. At its interim results briefing on Aug. 28, management said the company is actively promoting the spin-off and listing of non-listed assets within the group while continuing to dispose of non-strategic and non-core assets.

Fosun generated more than CNY12 billion (USD1.8 billion) in cash inflows from disposals of non-strategic and non-core assets in the first half, helping net profit attributable to shareholders of the parent surge 160 percent from a year earlier to CNY1.7 billion (USD250 million). Revenue remained broadly stable at CNY87 billion, according to the company's interim results.

Shares of Fosun [HK: 0656] closed 2.7 percent higher at HKD5.56 (US 70 cents) today, bringing their gain so far this year to 27 percent.

Editors: Dou Shicong, Emmi Laine