Skip to main content
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Victoria's Secret Owner to Invest in Crystal International's $574 Million IPO

Victoria's Secret parent company L Brands Inc. committed to buy $10 million of the supplier's stock in the offering, while Uniqlo-owner Fast Retailing has agreed to buy $20 million of stock.
Hong Kong | Source: Shutterstock
By
  • Bloomberg

HONG KONG, China — Garment supplier Crystal International Group Ltd. attracted cornerstone investors including Fast Retailing Co. to its Hong Kong initial public offering, which is seeking to raise as much as $574 million.

The Hong Kong-based company is offering 509.3 million shares at HK$7.30 to HK$8.80 ($0.93 to $1.13 at current exchange) apiece, according to terms for the deal obtained by Bloomberg on Tuesday. Fast Retailing, which runs the Uniqlo fashion chain and is a Crystal International customer, has agreed to buy $20 million of stock in the offering. L Brands Inc., owner of Victoria’s Secret, committed to buy $10 million of stock, the terms show.

Crystal International’s IPO will be the biggest on the city’s bourse from a home-grown Hong Kong company in more than two years, according to data compiled by Bloomberg. Mainland Chinese firms have increasingly dominated fundraising on the exchange, accounting for every deal above $500 million since the start of last year.

The company plans to use 45 percent of the proceeds to expand its manufacturing capacity and 25 percent to repay a loan related to its acquisition of Singapore-based sportswear manufacturer Vista Corp. Holdings Ltd. Another 20 percent will go toward upstream vertical expansion, while 10 percent will be used to replenish its working capital, the terms show.

ADVERTISEMENT

Morgan Stanley and HSBC Holdings Plc are joint sponsors for the offering, according to an earlier Hong Kong stock exchange filing.

Crystal International emerged from a wave of consolidation in the manufacturing industry to become the world’s biggest apparel manufacturer in terms of production volume, the filing shows. The company has manufacturing facilities in Vietnam, Cambodia, Bangladesh and Sri Lanka, as well as in China.

Chairman Kenneth Lo founded a predecessor of Crystal International in 1970. He is the eldest son of Law Ting-pong, the late founder of Hong Kong apparel retailer Bossini International Holdings Ltd.

By Crystal Tse; editors: Ben Scent and Darren Boey.

In This Article

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Financial Markets
A financial lens on the fast-changing fashion sector, including markets, investors and deals.

The Best of BoF 2023: Diversity’s Litmus Test

In 2020, like many companies, the $50 billion yoga apparel brand created a new department to improve internal diversity and inclusion, and to create a more equitable playing field for minorities. In interviews with BoF, 14 current and former employees said things only got worse.


The Year Ahead: The Future of Fashion Deal-Making

For fashion’s private market investors, deal-making may provide less-than-ideal returns and raise questions about the long-term value creation opportunities across parts of the fashion industry, reports The State of Fashion 2024.


The Investment Giant Behind Some of Fashion’s Biggest Deals

L Catterton, the private-equity firm with close ties to LVMH and Bernard Arnault that’s preparing to take Birkenstock public, has become an investment giant in the consumer-goods space, with stakes in companies selling everything from fashion to pet food to tacos.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
BoF Professional - How to Turn Data Into Meaningful Customer Connections
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
BoF Professional - How to Turn Data Into Meaningful Customer Connections