Chinese retailer GXG plans Hong Kong listing
Chinese menswear retailer GXG has filed for a public offering in Hong Kong.
Bloomberg reports the firm, which is controlled by a private equity fund managed by Singapore private equity firm L Catterton Asia (itself backed by luxury giant LVMH Moet Hennessy Louis Vuitton SE), is seeking to raise about US$300 million.
A statement from the company revealed plans to use the funds to expand its brand and product portfolio via acquisitions and strategic alliances; develop customer-oriented smart stores as an upgrade to its current offline outlets; and establish an advanced logistics centre.
“Our new retail platform capitalises on online and offline strengths, and increases efficiencies in terms of inventory management, supply chain management, product selection, and logistics by integrating offline retail stores with online channels,” the source said.
“We intend to maintain and strengthen our position as a leading fashion menswear company and continue to develop our leading position in the broader apparel market in China.”
Retailer GXG runs more than 2200 stores in China and commands around 3.23 per cent of the Chinese fashionable menswear market, ranking second in China in 2017 in terms of total retail revenue.