La Chapelle to raise HK$2.2b in public offering
Shanghai-based apparel maker Shanghai La Chapelle Fashion, backed by local jeweller Chow Tai Fook, is raising HK$2.2 billion in an initial public offering in Hong Kong, tapping the recovering sentiment in the primary market.
Shanghai-based apparel maker Shanghai La Chapelle Fashion, backed by local jeweller Chow Tai Fook, is raising HK$2.2 billion in an initial public offering in Hong Kong, tapping the recovering sentiment in the primary market.
The company plans to sell 122 million shares at between HK$13.98 and HK$18.20 per share, according to an exchange filing released yesterday.
Chow Tai Fook, controlled by billionaire Cheng Yu-tung, will invest US$20 million in the offering, according to a document the company released at an investor roadshow yesterday.
Another cornerstone investor the company has secured is Senda International Capital, a subsidiary of dye maker Zhejiang Longsheng, which is controlled by mainland billionaire Ruan Shuilong and his family. Senda will invest US$30 million.
The two cornerstone investors' shares will be subject to six-month lock-up periods, the document shows.
More than 80 per cent of the proceeds will be used to open no less than 1,000 new retail shops and acquire property projects as necessary in the next three years, as La Chapelle moves to expand its retail network on the mainland.