PE-backed apparel maker La Chapelle eyes $285m HK IPO

According to a prospectus, Shanghai La Chapelle is offering 121.58 million ordinary shares at HK$13.98-18.20 apiece.

Founded in 2001, the company designs, markets and sells clothes through retail stores. As of the end of June, it had 1,900 physical stores across 31 provinces. The company accounted for 5.7% of the overall retail sales market last year, making it the third-largest player in China, according to the Euromonitor International.

A group of VC and PE investors, including Legend Capital, Boxin Capital and Shanghai Ronggao Venture Capital invested $12.3 million in the company in 2010. Later the same year, Legend provided an additional $6.95 million.

Last May Goldman Sachs invested $48.66 million in the firm and then in August Asia Alternatives Management paid $9.95 million to purchase stakes from Boxin Capital, enaballing the China-focused fund manager to partially exit from La Chapelle.

The filing reveals that Legend holds 17.81% of the firm while Goldman owns 3.75% interest. Boxin's ownership is 8.83%, while Asia Alternatives has a 0.83% stake.

Two cornerstone investors - Chow Tai Fook and Senda International Capital, a subsidy of Zhejiang Longsheng Group - have been secured for the IPO. They will contribute a combined $50 million.

Revenue generated by the firm increased from RMB3.8 billion in 2012 to RM6.2 billion last year, while net profit rose from RMB260 million to RMB413 million during the same period.

CICC is the sole sponsor, while also taking on joint bookrunning responsibilities with CLSA.

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• Topics
• Greater China
• Exits
• Consumer
• China
• Consumer
• Legend Capital
• IPO
• Hong Kong (China)
• Goldman Sachs
• Asia Alternatives Management
• Exit