Quanzhou Shoe Enterprises Are On The Market Again

Following the seven wolves Hongxing Erke and Anta, XTEP, another famous enterprise in Quanzhou, will soon join the ranks of listed clothing and footwear enterprises.

The company will open the stock market in May 21st and is expected to be officially listed on the HKEx in June 3rd.

Not only is XTEP, but there are signs that PEAK movement, Jordan movement and 361 degree Quanzhou are also trying to plan their listing.

XTEP intends to raise HK $2 billion over the "flying sense" to the "XTEP" of the whole country. With the signing of Nicholas Tse, Willber Pan, Jolin, TWINS and other five stars, it has become the first sporting goods brand in China to adopt entertainment marketing and the largest brand of fashion and sporting goods in the mainland.

Yesterday afternoon, Wei Hai, manager of brand Department of XTEP (China) Co., confirmed to reporters that XTEP China (01368HK) held a IPO roadshow in May 16th, offering 550 million shares and HK $2 billion 228 million to HK $3 billion 25 million at HK $4.05 to HK $5.5 per share.

This is comparable to that of Anta listed in Hong Kong last year (HK $3 billion 100 million).

According to UBS, one of the sponsors listed, XTEP's net profit this year is about 474 million yuan, and its issuance range will be 17 times to 23 times the 2008 forecast earnings.

According to this calculation, XTEP, founded in 2001, will soon become a sports brand with a market value of HK $10 billion.

Ding Shuibo's international abacus relies on the footwear OEM business, Ding Shuibo, whose XTEP is currently mainly engaged in sports products, including shoes, clothing and accessories design, development, manufacturing and marketing, with the XTEP and Colin brands and Disney sports series of Chinese franchise.

Regarding the layout of the upcoming financing, Ding Shuibo told the Hongkong media recently that "24% of the proceeds will be used to buy brands, and outdoor sports brands, children's shoes and so on will be considered, regardless of international or local brands."

In view of the current situation of XTEP's sales and market influence in the mainland, according to Ding Shuibo, the company hopes to become an international brand, so it is sure to open a distribution store in Hongkong in the future.

A number of famous enterprises in Quanzhou plan to list in 2004. Seven wolves landed in the SME Board of Shenzhen Stock Exchange to start a listing of Fujian garment enterprises. In November 2005, Hongxing Erke was listed on the main board of Singapore (raising funds of about 200 million yuan), becoming the first Chinese professional sports brand to be listed overseas. Last year, Anta was successfully listed in Hongkong, plus the upcoming XTEP.

It is also understood that PEAK sports, Jordan sports, 361 degrees and so on have the same brand influence Quanzhou famous enterprises, are also planning the listing, and is expected to have concrete progress in the year.

Among them, PEAK sports has entered the silent period of listing.

Even local officials have been unable to resist it. Wang Maoquan, mayor of Chen Dai Town, Jinjiang, who occupies nearly half of the national market of sports shoes, has announced to the media heroically that there will be 6-7 listed companies in Chen Dai town in 2010.

"In the background of the old old overlord clothing and footwear in Quanzhou, these well-known enterprises in China will further consolidate their market position through capital expansion."

One industry insider said.