Recently, with the apparel retail market gradually warmer, surging in the hearts of many shoes and apparel business, "Listing Dream" was ignited again.

Data show that in 2017, there are 27 new textile and apparel listed companies in Shanghai, Shenzhen and Hong Kong Stock Exchanges, a record high for the number of newly-listed textile and apparel listed companies over the years, as of December 2017 Day in the world's major securities market, China Chemical Fiber, textiles, clothing footwear listed companies number of 332. From the newly added 27 listed companies in the industry distribution point of view, mainly in the industrial textiles industry and apparel industry.

In the first year of 2018, the domestic apparel industry or in turn usher in the largest IPO, women's Ochirly Europe's force when the parent company Hekki (China) Group Co., Ltd. recently announced an IPO, to be raised 3.252 billion yuan of funds.

Fund raised 3.2 billion

Seize the initiative is still the main reason for listing

In the recent two to three years, most of the companies that have a strong IPO intentions have gathered in the "new generation" and the apparel brands with obvious advantages in production and marketing are observed by observing several major clothing brands such as Ochirly and Pacifica that were outstanding last year. at this point.

For example, the Hekkey Group, founded in 1999 by the Wenzhou businessman Xu Yu and Li Shahu, was one of the stronger brand apparel companies that emerged in the field of apparel in the past few years after China's accession to the WTO. Hechki Group, formerly known as the clothing brand Ochirly. When the EU is the earlier force will create "mid-market class clothing brand" as a market positioning of the apparel business. Clear positioning for it has won a lot of loyal users. The first two years, there are commercial media survey showed that the brand in the first 90 after entering the workplace placed in the top rankings, very representative.

At present, the Group owns two women's brands OCHIRLY and FIVE PLUS, the men's brand TRENDIANO, the children's clothing brand COVEN GARDEN, as well as international brands such as MISS SIXTY, 10 Corso Como, Superdry and DENHAM. The group has formed a series of international brands including fashion, leisure, Jean, light luxury and other areas of fashion complex brand matrix.

The most noteworthy point in the group's recent years of activity is that Ochirly was acquired by L Capital Asia, a private equity fund owned by LVMH, the world's largest luxury goods group, in 2012, which invested $ 200 million in the acquisition of 10% Shares. This was the largest investment by foreign companies in China at the time when the company announced by Hekki Group was valued at 2 billion U.S. dollars. This is also the first time that L Capital holds shares in mainland companies, and indirectly represents the French LVMH Group buying an unprecedented Chinese fashion brand.

According to the statement made by Hekki Group in the public prospectus submitted to China Securities Regulatory Commission, the group plans to raise about 3.2 billion of the funds mainly for the expansion of 356 new self-operated stores.

Prospectus also shows that, similar to previously listed apparel groups such as Commonwealth of South-East Asia and Pacificapulla, Hekie also plans to invest funds raised in such projects as supply chain optimization, logistics center construction, marketing network construction and information system construction. Among them, the marketing network will be the focus of investment after Hekie, intends to invest an amount of about 1.839 billion yuan.

Some stampede regulation and some deep scandal

2017 domestic service enterprises listed on the road is not flat

Hekki Group's listing options, it can be said that the continuation of the last two or three years, the industry trend. Although the domestic fashion, shoes and apparel business in the IPO (IPO) in the wave has never been the main force, but in the past in 2017, they are definitely considered a group of very attractive performance of the company.

From the market performance point of view, the most significant increase in stock prices since this year is Shenzhou International, is the first domestic market over 100 billion Hong Kong dollar apparel group; followed by the Anta, since the beginning of this year, the stock price has risen 44%, the current market value About HK $ 89.5 billion. The stock price of JNBY, the parent company of JNBY listed in Hong Kong in October 2016, also performed well. Its share price has risen by more than 36% since the beginning of 2017. However, subject to the primary factors and the overall impact of the capital market environment, many service providers really difficult to be listed on the road.

Take "lead bird" Waxwing as an example. In January 2017, casual wear brand Wazhou Bird went public on A-share mainboard, setting off the first shots for local fashion companies to make their debut this year. The reason why the listing of Peace Bird attracts attention is not only because of its position in the industry but also because of the twists and turns in the listing of this company. Public information shows that IPO queuing time up to 6 years, continuous sprint three times. Coincidentally, February 14, May 31 listing of the Anzac Fashion, Nisshin fashion also experienced two round of IPO sprint history.

The cautiousness of the capital market in apparel companies' initial public offering (IPOs) is the result of two "unanticipated" IPO failures.

Terrestrial fashion is a problem after the IPO has been met, the company was forced to suspend the listing process because of ex-husband and former mother-in-law Yidanxue reported prior to the IPO IPO. The Masfield Fashion Co., Ltd. IPO project is suddenly suspended, the media exposed the reason is that its sponsor Southwest Securities "undermine" regulation.

Inventory, earnings are still hard targets

Expert: space is still huge but do not patronize "make money"

Although the listing of the road is not flat, but most people in the industry still think that as long as the Chinese consumer upgrades the same trend, want to compete for more space for development of apparel companies will choose to go public financing. But these companies should not be listed as the ultimate "goal of making money," but a new beginning.

Cheng Weixiong, the founder of Liangqi, pointed out that the capitalization of apparel enterprises on the market may allow more capital to participate in the apparel market. However, on the other hand, investors may also take a premium to leave.

In his view, a good company, listed in addition to emphasize earning money to protect the interests of shareholders, but also need to consider more far-reaching, for example, to do similar business development model, to fulfill more social responsibilities. In fact, sometimes the brand needs to do more sense of mission and responsibility, but now more people are still just "doing business."

Looking at today's Chinese clothing brand, high inventory, product quality, single-brand dependence is too high, the family business power and other obstacles still exist, whether in the process of starting the listing, or even properly listed after the listing of these issues is The key to influencing their ability to ultimately capitalize on their long-term development.

Cheng Weixiong that the garment business is not listed, but to find out the "market is to do?" Many companies are flocking to the market, after the listing but are not at ease the main industry, and some even went to do the final capital to go because Capital is more "money", this thinking can not be wrong, but certainly not entirely correct.