April 20, 2024

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The Sports Fanatics

Chinese sportswear startup Peak raises $232m as it aims for IPO

HONG KONG — Chinese athletic apparel maker Peak Sport Products has raised nearly 1.5 billion yuan ($232 million) in a strategic investment led by CR Capital Management, as the company has reportedly planned an initial public offering on a domestic stock exchange.

CR Capital, a wholly owned subsidiary of Chinese state-owned conglomerate China Resources, led the deal through its 2-billion yuan CR State-Regulated Xiamen Consumption Fund, according to a Sunday news release on Peak’s official WeChat account.

CCB Trust — a unit of China Construction Bank — its affiliate CCB Investment Funds Management and other state-owned and privately run fund management companies participated in the round.

The development came after Bloomberg cited sources in January that Peak was in discussions about an IPO in its home market that could happen as soon as next year. The sources also mentioned the company’s fundraising attempt, which was at a preliminary stage back then.

The IPO’s targeted listing market and offering size remain unclear. Peak could not be immediately reached for comment.

With the support of China Resources — whose wide range of businesses includes operating high-end shopping malls — Peak is expected to accelerate its expansion into first- and second-tier cities at home and abroad, targeting young consumers.

The company also plans to further optimize its equity structure, upgrade distribution channels, and increase investment in product research and development, said Peak CEO Xu Zhihua in the release.

“We will continue our focus on developing Peak’s key strengths that combine brand building, sports technology, internationalization and fashion to lift technological innovations and R&D input under a user-centric strategy,” he said.

Peak, which already made its mark at the Tokyo Olympics by sponsoring New Zealand, Iceland, Belgium and four other delegations, seeks to expand cooperation with sports events and athletes after the new investment.

Started by Xu Jiangnan in 1988 and based in southeastern China’s Fujian Province, Peak designs, manufactures and sells sportswear and footwear in online and offline channels.

The company was delisted from the Hong Kong stock exchange in a $311 million take-private deal in November 2016, after Xu saw what he described as “unsatisfactory” stock price performance since listing in September 2009. The company announced its intent to seek a domestic listing in a news release on its WeChat account in February 2017.

For the original story from DealStreetAsia, click here.

DealStreetAsia is a financial news site based in Singapore that focuses on private equity, venture capital and corporate investment activity in Asia, especially Southeast Asia, India and greater China. Nikkei owns a majority stake in the company.