Lingerie manufacturer Regina Miracle launches IPO
摘要: World’spremierbramanufacturer:ReginaMiracleaccountedfor1.0%ofglobalbraproductionvolumein2014,ranking
World’s premier bra manufacturer: Regina Miracle accounted for 1.0% ofglobal bra production volume in 2014, ranking it No.1 according to Frost &Sullivan. It operates an innovative design manufacturer (IDM) model,performing independent R&D activities and providing innovative productofferings to brand owners. It sources raw material from fabric manufacturerssuch as Best Pacific (2111 HK/HK$3.28, NR) and Pacific Textiles (1382HK/HK$10.72, HOLD), and also from foam supplier Inoac.
Key supplier for Victoria’s Secret: Regina Miracle generated 35% of itsFY15 revenue from its long-time customer L Brands (LB US/US$91.84, NR),the largest lingerie retailer in the US and the parent company of Victoria’s Secret,PINK and sportswear line VSX. Regina Miracle has worked with L Brands for 15years and with most other major clients for more than 10 years, includingHanesbrands, Calvin Klein, adidas etc. Its top five customers accounted for 69%of its total sales in FY15.
Secured cornerstone investments from L Brands and Tianhai: L Brandsand Tianhai International have each agreed to subscribe for up to US$10m(c.HK$77.5m) in shares at the offer price, together accounting for around 8-10%of the offered shares or around 2.1-2.4% of the enlarged capital. Tianhai Int’l isan investment subsidiary of Tianhai Lace from Guangzhou, the world’s largestlace manufacturer with sales revenue of US$51.2m and a market share of 4.4%in 2012, according to Frost & Sullivan.
Capacity expansion: Regina Miracle has started the construction of additionalfacilities in Vietnam. The first facility for bras and intimate wear productionshould commence operation in 1Q16 with planned capacity around 78% of thecurrent plant in Shenzhen. The second facility for bra pads and molds as well asfunctional sports products should commence operation in 3Q16, accounting for75% and 97% of current capacity, respectively.
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