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Wah Sun to go public in Hong Kong
Posted on Thursday, 11 January 2018 08:49
Cayman Islands-incorporated Wah Sun Handbags International Holdings has set a date of 22nd January 2018 for listing on the Hong Kong bourse via an initial public offering worth as much as HKD 138.00 million (USD 17.64 million).
The non-leather handbag original equipment manufacturer (OEM) is selling 100.00 million shares at between HKD 1.00 and HKD 1.38 apiece, giving a market capitalisation of HKD 400.00 million to HKD 552.00 million.
Wah Sun mainly makes and sells its items to well-known fashion brands headquartered in the US, Canada, Spain, Sweden and Japan.
Globally, the company was the fifth largest non-leather handbag OEM, the leader in Cambodia, and the second biggest in China, by revenue, with a market share of 0.4 per cent, 68.3 per cent and 0.5 per cent, respectively, in 2016.
Its mass market and middle-end priced products include shoulder, crossbody and tote bags, and are made from materials such as PVC, PU and various textiles.
Wah Sun’s gearing rose to 52.2 per cent as at 31st March 2017 due to an increase in interest bearing bank borrowings for operations.
This then declined to 38.7 per cent, as at 31st July 2017, down to an increase in total equity due to the accumulation of profit and no dividend issue in the intervening four month-period.
North America accounts for the majority of the company’s top line – some 71.5 per cent in fiscal 2017and 68.5 per cent in the four months ended 31st July 2017.
Proceeds from the IPO are slated for expanding production facilities in Cambodia, and establishing a product development team in that country.
Money will also fund the upgrade of software and hardware at two of its factories, and the refurbishment of an existing showroom in Hong Kong, among other things.
The IPO is one of several lodged with the Hong Kong bourse so far this year, including Ulferts International and C-MER Eye Care Holdings.
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