Multi-brand apparel group Shanghai La Chapelle Fashion has received approval from Chinese security regulators to list on domestic Chinese stock exchanges, three years after completing an IPO in Hong Kong.

Previously the company has failed in its attempts to list on domestic exchanges. In Hong Kong its shares have long traded below its IPO price.

With a more favourable valuation, and backed by Legend Capital, Goldman Sachs and other investors, La Chapelle can now raise RMB1.64 billion (US$240 million) in fresh capital to fuel its expansion.

Legend Capital invested RMB45 million to acquire a 25 per cent stake in the company in 2009. A year later, as the company reached its earnings target, Legend invested another RMB46 million.

At the same time, La Chapelle quadrupled its sales to RMB2 billion in 2011 from RMB500 million in 2009, but in 2013 its IPO application was rejected by the China Securities Regulatory Commission.

That year, Goldman invested RMB300 million for a 5 per cent interest in the company, which it valued at RMB6 billion, before the company moved its focus to a Hong Kong IPO, which it completed in October 2014, raising HK$1.7 billion.

Its shares dropped as low as HK$7 apiece last July despite a HK$120 million share buyback aimed to improve sentiment.

Now the company plans to issue no more than 54.77 million new shares to raise RMB1.64 billion. La Chapelle plans to use the IPO proceeds on opening more retail stores. The company expanded its network of retail locations, which are self-owned, to nearly 9000 last year from 1841 in 2011.

Founded in 1998, La Chapelle focusses on fast fashion for young female consumers in China.