Shangpin Home Collection to be listed in China
In this article (5)
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.
Questions & Answers
Q.What exchange will Shangpin Home Collection be listed on?
What exchange will Shangpin Home Collection be listed on?
Guangzhou Shangpin Home Collection Co Ltd plans to list on the Growth Enterprise Market of Shenzhen Stock Exchange. This is described as China's equivalent to the US Nasdaq exchange.
Q.How does Shangpin Home Collection intend to use the funds raised from the IPO?
How does Shangpin Home Collection intend to use the funds raised from the IPO?
The company plans to use the 2.5 billion yuan raised to upgrade its manufacturing systems. They also intend to improve their online services and expand their fulfilment centres.
Q.What is the breakdown of Shangpin Home Collection's store ownership?
What is the breakdown of Shangpin Home Collection's store ownership?
Shangpin Home Collection operates a total of 969 stores. Out of these, 901 are franchised outlets, with the remaining balance being self-run by the company.
Q.Where did the majority of Shangpin Home Collection's profit growth come from last year?
Where did the majority of Shangpin Home Collection's profit growth come from last year?
Last year, the vast majority of the company's 63 per cent profit growth reportedly came from its eCommerce business. This includes sales from its own site, Homekoo.com, and platforms like Tmall and JD.com.
Reader pulse
What's the biggest driver of Shangpin's success?
20,773 votes so far