GXG China plans Hong Kong listing
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Chinese menswear retailer GXG has filed for a public offering in Hong Kong.
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.
Questions & Answers
Q.What is the primary goal of GXG's public offering in Hong Kong?
What is the primary goal of GXG's public offering in Hong Kong?
GXG aims to raise approximately US$300 million through the listing. These funds are intended for brand expansion, smart store development, and establishing an advanced logistics centre.
Q.How does GXG plan to use the capital raised from the listing?
How does GXG plan to use the capital raised from the listing?
The company plans to use the funds to expand its brand and product portfolio through acquisitions and alliances, develop customer-oriented smart stores, and establish an advanced logistics centre.
Q.What is GXG's current market position in China's fashionable menswear segment?
What is GXG's current market position in China's fashionable menswear segment?
GXG currently operates over 2,200 stores in China and held 3.23% of the fashionable menswear market in 2017, ranking second by total retail revenue.
Q.Who controls GXG, the Chinese menswear retailer?
Who controls GXG, the Chinese menswear retailer?
GXG is controlled by a private equity fund managed by Singapore private equity firm L Catterton Asia. L Catterton Asia is itself backed by luxury giant LVMH Moet Hennessy Louis Vuitton SE.
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