Thai Converse distributor eyes IPO for retail expansion

Converse’s Thai distributor looks to expand its presence in Thailand and globally with funds raised via the Bangkok firm’s stock exchange launch in the Asian nation in 2017.

Rich Sport, Thailand’s sole distributor of Converse shoes and apparel, has submitted a filing for an initial public offering on the Stock Exchange of Thailand in 2017.

The Thai manufacturer and distributor hopes to raise funds to grow its business internationally, according to the filing, and has appointed Finansia Syrus Securities to advise the IPO.

The IPO is the 14th stock debut in Thailand from a local firm this year, according to Dealstreet Asia.

Getting down to details, Rich Sport will issue 200 million IPO shares, or 26 per cent of capital. From this, 195 million shares will be offered to the public while the remaining 5 million will be allotted to employees and subsidiaries, added the filing.

The company has a total capital made up of 770 million shares, with paid-up capital of 570 million shares at a par value of one baht each, it said.

At present, Rich Sport owns 30 per cent of shares, with three members of the Wongpaitoonpiya family owning 23.33 per cent each. After the IPO, Rich Sport’s share will be lessened to 22.21 per cent.

Rich Sport has been a maker and distributor of the Converse brand in Thailand for 14 years. Rich Sport currently oversees 41 Converse shops in Thailand and 11 points-of-sales inside local department stores there.

The firm reported revenue of 601.12 million baht ($18 million) and net profit of 122.16 million baht ($3.65 million) for the first six months of the year.

Founded in 1908, Converse is one of America’s most iconic footwear companies, and has been a subsidiary of Nike since 2003.

It is known for its products under the trade names Cons, Chuck Taylor All-Star John Varvatos, and Jack Purcell.