Shangpin Home Collection to be listed in China

The parent of Chinese furniture retailer Shangpin Home Collection has announced plans for an IPO to raise 2.5 billion yuan (US$402 million).

Guangzhou Shangpin Home Collection Co Ltd will list on the Growth Enterprise Market of Shenzhen Stock Exchange, China’s version of the US Nasdaq exchange.

Shangpin Home Collection operates 969 stores, 901 of them franchised, the balance self-run.

The company makes customised furniture which it sells through Shangpin Home Collection stores and online, where it ranks 42nd in China’s top 500 internet retailers.

The company was founded in 2004. It says it plans to use the funds to upgrade it manufacturing systems, online services and fulfilment centres.

Last year, Shangpin Home Collection boosted profit by 63 per cent, the vast majority of that growth reportedly coming from its eCommerce business on its own site Homekoo.com and on Tmall and JD.com.

Physical stores, however, currently still account for the majority of sales.