ITAT to raise HK$7.8bln from IPO
Retailer ITAT Group Ltd, mainland retailer of apparel, shoes and accessories, unveiled yesterday plans to raise US$1 billion from a Hong Kong IPO next April to fund its expansion.
At present, ITAT has 343 stores and eight hyperstores in 25 provinces and municipalities in China, including 12 stores in Beijing. It plans to increase its network to over 1,600 stores next year.
Partially owned by a unit of Morgan Stanley, the group which shares revenue with suppliers and landlords enabled the three-year-old retailer to expand rapidly and attract oversea investors. It is so far the latest mainland retailer seeking to raise funds in Hong Kong. According to its corporate website, it states expectation of net profit to surge to RMB 1.04 billion this year from RMB 70 million last year on the back of retail network expansion. ITAT also projected net profit to hit RMB 2.98 billion in 2008 and RMB 5.6 billion in 2009.
The group had hired Deutsche Bank AG
A Morgan Stanley unit, MS China 5 Ltd, has a stake in ITAT, which is based in Shenzhen and incorporated in Hong Kong. MS China 5, Blue Ridge China Partners L.P. and Citadel MT Trading have invested a combined US$120 million in ITAT.
Meanwhile, other retailers that pursued IPOs this year include Intime Department Store (Group)<1833> and fast-food chain Ajisen (China) Holdings<538>.
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