Chinese fashion house Trendy International Group Co., owner of the Miss Sixty jeans brand in Asia, is planning a domestic initial public offering as soon as the end of next year, Bloomberg reports, citing unnamed sources.
The Guangzhou-based company plans to seek a valuation of about US$5 billion, the sources said. Trendy International is said to have picked a Chinese investment bank to work on the proposed share sale.
Trendy International will join other Chinese clothing retailers such as Modern Avenue Group Co., owner of the Canudilo brand, and Shanghai La Chapelle Fashion Co. in funding their expansion by selling shares.
A total of 25 apparel companies held IPOs in China and Hong Kong during the past three years that raised a combined US$2.2 billion, according to data compiled by Bloomberg.
Shares of Modern Avenue have risen 118 percent in Shenzhen trading since its US$109 million IPO in February 2012, outpacing the 107 percent rise in the Shenzhen Composite Index.
Shanghai La Chapelle has dropped 44 percent since its October 2014 trading debut in Hong Kong, compared with a 5.6 percent fall in the benchmark Hang Seng Index.
L Capital Asia, an investment firm backed by French luxury group LVMH, bought a minority stake in Trendy International for nearly US$200 million in 2011, according to a press statement.
The private equity firm bought an estimated 10 percent stake, valuing Trendy International at US$2 billion at the time, one of the sources said.
The long IPO pipeline in China could delay Trendy International’s listing process, the people said.
Trendy International, founded in 1999, owns domestic women’s brands Ochirly and Five Plus as well as male casualwear line Trendiano.
It later acquired the Asian operations of Miss Sixty, famous for its skin-tight retro jeans, as well as the Energie and Killah denim brands, according to its website.
The Chinese fashion group now operates more than 3,000 shops, according to its website.
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