Speed Apparel Holding launches IPO
A total of 125 million shares are being offered as apparel supply-chain services provider Speed Apparel Holding moves to list on the Growth Enterprises Market of The Stock Exchange for Hong Kong.
Of these share, 90 per cent are subject to re-allocation, with a public offering of 12.5 million shares launching today and closing at noon on Friday. The allotment result is expected to be announced on May 29, with share dealings expected to start two days later.
Aggregated net proceeds from the share offer will be about HK$39.4 million (US$5.06 million). Speed Apparel intends to use the proceeds to strengthen and diversify its customer base, expand its product mix, enhance the group’s design and development capabilities, and enhance its inventory management.
Messis Capital is the listing sponsor, with Great Roc Capital Securities as the bookrunner. The joint lead managers are Founder Securities (Hong Kong), RHB Securities Hong Kong and Quam Securities Company.
Speed Apparel is an apparel supply-chain management services provider with most of its products being sold in Japan. The revenue from this market amounted to about HK$367.3 million, HK$390.8 million and HK$288.9 million for the two years ended March 31 last year and the eight months to the end of November. This accounted for about 92.3, 89.8 and 92.7 per cent of the group’s total revenue, respectively.
The group’s services include fashion-trend analysis, product design and development, material sourcing and procurement, production management, quality control and logistics. Revenue mainly comes from womenswear sales, representing about 90.6, 83.5 and 77.9 per cent of total revenue respectively.
Menswear revenue grew by 91.2 per cent to about HK$71.9 million for the 12 months to March 31 last year.
During the same period, the revenue contributed by the largest customer, Marubeni, amounted to about 43.9, 50.8 and 50.9 per cent respectively. A Marubeni store opened in Tsim Sha Tsui in March followed by another in Causeway Bay last month.