E-Land plots first IPO, in Hong KongE-Land Group, a privately held Korean fashion retailer, said yesterday that it plans to list its Chinese affiliate, E-Land Fashion China Holdings, on the Hong Kong stock exchange in a bid to expand its presence in the Chinese market and raise funds.
E-Land Fashion China Holdings said it will launch an initial public offering and list the company on the Hong Kong Stock Exchange by the end of 2013. E-Land Fashion, 100 percent owned by its parent company E-Land World, is a major player in women’s clothing in China.
This marks E-Land’s first IPO. Previously, it has limited itself to acquiring listed companies through mergers and acquisitions.
It officially embarked on processing the IPO by sending proposals to global investment banks yesterday and plans to select a managing firm to oversee the IPO within the month, according to the company.
With the initial IPO, E-Land is expecting to generate as much as $1 billion of fresh funds to help improve the financial status of the E-Land China affiliate and enlarge its business. Listing the company could also allow it to directly strengthen its market presence in the fast-emerging economy.
“The IPO will substantially improve the financial structure of E-Land Group through a series of interlinked funding schemes at a global level. It will also further strengthen stability and internal transparency,” said a group employee.
By Kim Jung-yoon [firstname.lastname@example.org ]