Sinomax and Ernest Borel map out growth plans in Hong Kong IPO push

Memory foam bedding products company Sinomax Group and luxury-watch maker Ernest Borel Holdings announced details of their proposed listings on the Hong Kong stock exchange yesterday.

Sinomax said it would offer 750 million shares globally at HK$1.06 to HK$1.43 each from today. Trading of the shares will begin on Thursday.

Founded in 2000, Sinomax is the leading retailer in Hong Kong and on the mainland of viscoelastic pillows, mattresses and other bedding products more commonly known as memory foam. It is also the second-largest supplier in the United States where it operates a mainly wholesale business.

The firm expects to raise HK$171.2 million, and said it planned to use 27 per cent of the capital to build and promote the brand and a further 28 per cent for acquisitions.

Sinomax president and executive director Eric Cheung said although the company operated in a premium mass space, it was not worried about the slowdown in luxury spending on the mainland.

"We are not focused on the extremely exclusive luxury space. At the moment, we can't see any impact," he said. "We believe the biggest obstacle isn't the anti-graft campaign. The biggest challenge on the mainland is how to spread awareness of this new technology and its benefits over traditional products."