Topsports shares surged 8 per cent when trading commenced in Hong Kong this week after the Shenzhen-headquartered sports brand raised US$1 billion in a public listing.
The increased share value – from the HK$8.50 issue price to $9.16 – converts into a market capitalisation of about $6.74 billion
Topsports was spun off by Belle International in a plan hatched more than a year ago by its private-equity owners Hillhouse Capital and CDH who took Belle private in a US$6.8 billion deal in July 2017.
Topsports is China’s largest sportswear retailer in terms of retail sales value with a 15.9-per-cent market share last year. It distributes and is a retail partner of sportswear brands Nike and Adidas, among others.