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Global Offering of 295,000,000 Shares;
Ranging from HK$5.38 to HK$6.38 Per Offer Share to Raise Up to HK$1,882.1 Million |
HONG KONG, Sept 23, 2015 - (ACN Newswire) - Leading global intimate wear innovative design manufacturer ("IDM") and the industry's number one bra manufacturing company globally* Regina Miracle International (Holdings) Limited ("Regina Miracle" or the "Group"), today announced the details of its proposed listing on the Main Board of The Stock Exchange of Hong Kong Limited ("HKSE").
 | | Regina Miracle Announces Details of Proposed Listing on the Main Board of the Hong Kong Stock Exchange |
Investment Highlights
- A leading global intimate wear company and the industry's number one bra manufacturing company globally
- Unique IDM business model: innovates, designs and manufactures a wide range of intimate wear and functional sports products for leading global brands
- Solid relationship with a number of internationally recognized intimate wear and sporting goods brands such as Victoria's Secret and Under Armour
- Proven financial track record: revenue increased at a CAGR of 20.2% between FY2013 and FY2015 to reach HK$4,192.0 million in FY2015, with adjusted profit surged at a CAGR of 72.4% between FY2013 and FY2015 to reach HK$335.2 million in FY2015
- Clear expansion plan: additional production facilities under construction / planning in multiple regions, including Vietnam and Wujiang, China - expect annual production capacity to be nearly doubled by 2018
- Dividend policy: no less than 30% of its distributable net profit attributable annually
Offering Details
Regina Miracle plans to offer an aggregate of 295,000,000 Shares (subject to the Over-allotment Option) for Global Offering, of which 265,500,000 Shares will be for International Offering (subject to adjustment and the Over-allotment Option) and 29,500,000 Shares will be for Hong Kong Public Offering (subject to adjustment). The indicative offer price range is set between HK$5.38 and HK$6.38 per Offer Share.
The Hong Kong Public Offering will begin at 9:00 a.m. on 24 September 2015 (Thursday) and ends at 12:00 noon on 30 September 2015 (Wednesday). The final Offer Price and allotment results will be announced on 7 October 2015 (Wednesday). Dealing of Shares will commence on the Main Board of HKSE on 8 October 2015 (Thursday) under the stock code 2199. Shares will be traded in board lots of 1,000 Shares each.
Morgan Stanley Asia Limited is the Sole Sponsor and Sole Global Coordinator. Morgan Stanley Asia Limited and CLSA Limited are the Joint Bookrunners and Joint Lead Managers.
L Brands becomes Cornerstone Investor, Solidifying the Close Relationship
As part of the International Offering, the Group and Morgan Stanley Asia Limited, the Sole Global Coordinator, have entered into a cornerstone investment agreement with L (Overseas) Holdings LP ("L (Overseas)"), a foreign investment subsidiary of L Brands Inc., ("L Brands", NYSE: LB), with flagship brands including Victoria's Secret, PINK, Bath & Body Works, La Senza and Henri Bendel etc., in which L (Overseas) has agreed to subscribe for such number of Shares (rounded down to the nearest whole board lot of 1,000 Shares) which may be purchased for up to US$10 million (approximately HK$77.5 million) at the Offer Price. L Brands is an international company with annual sales of more than US$11 billion in 2014 and operates 2,976 company-owned specialty stores in the United States, Canada and the United Kingdom, and its brands are sold in more than 650 additional non-company-owned locations worldwide. The cornerstone investment agreement signed between the Group and L (Overseas) fully demonstrated L Brands' strong support to Regina Miracle and the solid and long-term relationship built between the two companies.
The Industry's Number One* Bra Manufacturing Company Globally and a Trend-Setting Innovative Design Manufacturer (IDM)
Regina Miracle is a leading global intimate wear company that innovates, designs and manufactures a wide range of intimate wear and functional sports products for leading global brands through an innovative design manufacturer ("IDM") business model, providing customers with high value-added and integrated IDM services ranging from product concept design, material and technological development, specification design to production. The IDM business model has spearheaded the Group's rapid development into the industry's number one* bra manufacturing company globally and makes it a value-creator, enabling Regina Miracle to become a driving force for developing new products and break-through technologies.
Strategic Cooperation with Leading Global Brands and Quality Customers
Regina Miracle's products can be divided into three categories: (1) bras and intimate wear (including bras, sports bras, panties, shape wear and others); (2) bra pads and other molded products; and (3) functional sports products (including sports footwear, functional seamless sportswear and wearable related sports products). Regina Miracle has established long-term relationship with a number of internationally recognized intimate wear and sporting goods brands such as Victoria's Secret and VSX owned by L Brands, Bali, Maidenform and Champion owned by Hanesbrands Inc., Calvin Klein and Warner's owned by PVH Corp., adidas and Reebok owned by adidas AG and Under Armour owned by Under Armour, Inc., etc. As the Group has continuously focused on innovation and developed high value-added products, it has created a mutually beneficial relationship with its high-quality customers. Most of its major customers have been with the Group for more than ten years and it is one of L Brands' largest suppliers of intimate wear while both companies have established relationship for more than 15 years.
Pioneering Innovation and R&D Capabilities and Successful Expansion of Product Lines into Functional Sports Products
The Group's IDM business model enables it to generate innovative ideas across multiple industries and product lines, and also facilitates the Group to integrate resources from up- and down-stream of the industry. Supported by the comprehensive innovation, R&D development capabilities and core technologies accumulated in the production of intimate wear, the Group has expanded its product portfolio from intimate wear to sports bras, and further to functional sports products through its cross-industry innovation capabilities. Armed with the Group's thorough understanding of comfort and functional requirements of intimate apparel, it began jointly developing the speedform sports running shoes series with Under Armour in 2011 which have been warmly received by the market since their launch and garnered a number of international awards. With its strong R&D capabilities, the Group is able to present no less than 100 different styles of intimate wear products and functional sports products to customers in FY2013, and over 300 different styles of intimate wear products and functional sports products to customers in each of FY2014 and FY2015.
Future Strategies
According to the Frost & Sullivan Report, total retail sales of the global intimate wear industry is expected to reach US$463.9 billion by 2019, representing a CAGR of 7.3% from 2014 to 2019. On the other hand, the global sports footwear industry is expected to reach total retail sales of approximately US$142.5 billion by 2019, which would represent a CAGR of approximately 9.5% from 2014 to 2019.
To capture numerous business opportunities in global intimate wear and sports footwear industry, Regina Miracle plans to expand its production capacity by constructing additional production facilities in multiple regions, including Vietnam and Wujiang National Economic and Technological Development Zone in Jiangsu Province, China. The Group expected to have four additional facilities in Vietnam in operation by 2018, which will nearly double the Group's current production capacity. The Group believes that the expansion plan could facilitate it to capture growth opportunities in different segments of the market.
In addition, the Group will continue to devote substantial resources to cross-industry and cross-product-line technology innovations and R&D activities for launching break-through technologies and products in order to further strengthen the relationships with existing brand partners. Apart from continuously expanding the Group's intimate wear businesses and strengthen its market position in the intimate wear industry, it will also further expand into functional sports products industries by launching more sports footwear, functional seamless sportswear, and wearable related sports products in order to grow its business and broaden its customer base. The Group also plans to deploy a more robust information technology platform and higher-efficiency production planning systems to optimize its production efficiency as well as minimizing its inventory level.
Led by Mr. YY Hung, the Group's founder and Chairman with over 16 years of experience in the industry, as well a seasoned and innovative management team with an entrepreneurial spirit, extensive operational expertise and an in-depth understanding of the industry, the Group is committed to further consolidating its leading position of global intimate wear innovative design manufacturer to achieve sustainable growth and maximize returns for its shareholders in the long run.
Use of Proceeds
Assuming the over-allotment option is not exercised and the Offer Price is fixed at HK$5.88 per Offer Share (being the mid-point of the indicative range of the Offer Price of HK$5.38 to HK$6.38 per Offer Share), after deduction of underwriting fees and commissions and other estimated expenses in connection with the Global Offering, net proceeds are estimated to be approximately HK$1,609.2 million and will be used as:
Purpose / Approximately
Increase production capacity, including constructing additional production facilities and purchasing additional machineries, and enhancing R&D capabilities - 70%
Repayment of borrowings - 20%
Working capital and general corporate purposes - 10%
Dividend Policy
The Group intends to adopt, after its listing, a general annual dividend policy of declaring and paying dividends on an annual basis of no less than 30% of its distributable net profit attributable to the Group for any particular financial year.
Financial Highlights
For the year ended 31 March
(HK$'000) 2013 2014 Change (%) 2015 Change (%)
Revenue 2,903,273 3,802,971 +31.0% 4,192,009 +10.2%
Gross Profit 626,262 790,350 +26.2% 979,384 +23.9%
Gross Margin 21.6% 20.8% - 23.4% -
Adjusted Profit 112,723 208,257 +84.8% 335,171 +60.9%
for the Year(1)
Adjusted Profit 3.9% 5.5% - 8.0% -
Margin for
the Year (%)
Contact:
Strategic Financial Relations Limited
Iris Lee Tel: (852) 2864 4829 Email: iris.lee@sprg.com.hk
Vicky Lee Tel: (852) 2864 4834 Email: vicky.lee@sprg.com.hk
Maggie Au Tel: (852) 2864 4815 Email: maggie.au@sprg.com.hk
Topic: Press release summary
Source: Regina Miracle International (Holdings) Limited
Sectors: Daily Finance
https://www.acnnewswire.com
From the Asia Corporate News Network
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