Pou Sheng International (Holdings), the world's largest sportswear manufacturer, will sell HK$3.09 billion in stocks on Hong Kong exchanges to find limited interest from local investors, market watchers say.
The company's Initial Public Offer will put 823.378 million shares at a range of HK$2.93 to HK$3.75 each on to the market. Sales are expected to begin on June 6.
Pou Sheng just finished its Hong Kong's road show yesterday and will open its retail store next Monday.
But Pou Sheng does not have its own products and brands, which may limit its attraction for investors. The grown for company is basically relied on the existing distribution rights and license agreements with brand companies and dealers.
It is not as big as the country's top sportswear retailers such as Li-Ning (SEHK: 2331) and Anta. said Nelson Chan Kai-fung, general manager of Bright Smart Securities.
The retail and brand licensing business for Pou Sheng accounted for around 87 percent of its total revenue for the year to last September.