Hong Kong-based garment manufacturer Crystal International Group aims to raise $570 million in an initial public offering (IPO) that began on October 23. The firm has priced the offering between HK$7.3 and HK$8.8 per share, with 509.3 million shares to be issued in all, according to its filing. The proceeds will be used in expansion and replaying loans.
The company, which was ranked the world’s largest apparel maker by production volume in 2016 by research firm Euromonitor, supplies garments to Fast Retailing, the owner of fashion chain Uniqlo, Gap, H&M, and L Brands, which operates Victoria’s Secret.
Fast Retailing will subscribe for shares worth $20 million, while L (Overseas) Holdings, a subsidiary of L Brands, will subscribe for $10 million worth of shares, according to media reports originating from Hong Kong.
“We will invest over $400 million in capital expenditure from 2017 to 2019, which will improve our production capacity by more than 50 per cent,” said Ernest Lee, the firm’s chief financial officer. The company plans to use 45 per cent of net proceeds to expand its manufacturing capacity in Vietnam, where it is already larger than in China, and Bangladesh over the next three years, he added.
It also plans to expand into fabric production. (DS)
Fibre2Fashion News Desk – India