Big brands supporting Crystal International IPO
Uniqlo owner Fast Retailing is among cornerstone investors in the Hong Kong IPO of garment supplier Crystal International Group.
Offering 509.3 million shares, it is seeking to raise as much as HK$574 million (US$73.5 million), reports Bloomberg.
Fast Retailing, which is a Crystal International customer, has agreed to buy $20 million of stock in the offering, while Victoria’s Secret owner L Brands is committed to a $10 million spend.
Crystal International’s IPO will be the biggest on the city’s bourse from a home-grown company in more than two years. The company plans to use 45 per cent of the proceeds to expand its manufacturing capacity and 25 per cent to repay a loan related to its acquisition of Singapore-based sportswear manufacturer Vista Corp Holdings.
Another 20 per cent will go toward upstream vertical expansion, while 10 per cent will be used to replenish its working capital.
Morgan Stanley and HSBC Holdings are joint sponsors for the offering, according to a Hong Kong stock exchange filing.
It shows that Crystal International emerged from a wave of consolidation in the manufacturing industry to become the world’s largest apparel manufacturer in terms of production volume. The company has manufacturing plants in Bangladesh, Cambodia, China, Sri Lanka and Vietnam.