Listing hopeful Xdlong International, positioned as a maker of value sports shoes selling in smaller towns on the mainland, said it would raise average selling prices by 10 per cent to 15 per cent annually over the next two years.
The company, which is aiming to raise up to HK$990 million in an initial public offering, said low price was still its edge, at a time of keen competition on the mainland.
'We have raised factory-gate prices and cut the discount for distributors over the past three years without getting negative feedback from distributors or customers,' said chairman Lin Shuipan. 'Our prices will still be lower than those of rivals even after we raise prices.'
Xdlong, the mainland's fourth-largest sportswear maker and retailer, sells its footwear at an average of 200 to 300 yuan (HK$228 to HK$342) a pair. It has grown quickly in second- and third-tier cities, particularly in the country's southwest, where 45 per cent of its 3,008 stores are located.
It raised the average ex-factory price of footwear to 65.2 yuan last year from 61.2 yuan a year earlier.
The Fujian-based company plans to sell 500 million shares at HK$1.38 to HK$1.98 each to boost its brand and expand its sales network.