Chinese sportswear startup Peak raises $ 232 million as part of its IPO goal
HONG KONG – Chinese sportswear 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 reportedly planned a first public offering on a national stock exchange.
CR Capital, a wholly-owned subsidiary of Chinese state-owned conglomerate China Resources, conducted the transaction through its 2 billion yuan CR state-regulated consumer fund CR, according to a press release. Sunday on Peak’s official WeChat account.
CCB Trust – a unit of China Construction Bank – its subsidiary CCB Investment Funds Management and other public and private 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 take place as early as next year. The sources also spoke of the company’s fundraising attempt, which was in its early stages at the time.
The target market for the IPO and the size of the offering remains unclear. Peak could not immediately be reached for comment.
With the backing of China Resources, whose broad spectrum of activities 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 capital structure, upgrade its distribution channels and increase investment in product research and development, Peak CEO Xu Zhihua said in the statement.
“We will continue to focus on developing Peak’s key strengths that combine branding, sports technology, internationalization and fashion to drive technological innovation and R&D as part of a strategy focused on l ‘user,’ he said.
Peak, which has already made its mark at the Tokyo Olympics by sponsoring New Zealand, Iceland, Belgium and four other delegations, is looking to expand cooperation with sporting events and athletes after the new investment.
Launched by Xu Jiangnan in 1988 and based in Fujian Province (southeast China), Peak designs, manufactures and sells sportswear and footwear through both online and offline channels.
The company was delisted from the Hong Kong Stock Exchange in a $ 311 million equity deal in November 2016, after Xu saw what he has described as “unsatisfactory” stock market performance ever since. its listing in September 2009. The company announced its intention to search for a listing in a press release on its WeChat account in February 2017.
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