Embry plans HK$300m float to fund expansion

Embry Group, a Hong Kong lingerie manufacturer, plans to raise as much as HK$300 million from an initial public offering on the local stock exchange late next month at the earliest to help fund its expansion in the mainland, market sources said.

'The deal should be eye-catching and easily acceptable to local investors given its well-established brands and long track record in the local retail market,' one source said.

Embry has been selling brassieres and other women's underwear in Hong Kong for about 30 years. It moved into China in the early 1990s.

Local brokerage Tai Fook Capital is helping arrange the offering.

The proceeds will go mainly to building new production lines and other factory investments.

Embry's shares might command a premium to some of its competitors because the company sells goods under its own brands, unlike its rivals which manufacture them for others, a typically lower-margin business.