L Catterton-Backed Brand GXG Is Said to Plan $300 Million IPO
(Bloomberg) -- GXG, the Chinese men’s fashion retailer controlled by L Catterton Asia, is planning a Hong Kong initial public offering that could raise about $300 million, according to people with knowledge of the matter.
The Ningbo-based street fashion brand is working with investment banks on the proposed share sale, according to the people, who asked not to be identified because the information is private. It is preparing to list as soon as this year, one of the people said.
L Catterton Asia, the consumer-focused private equity firm backed by luxury giant LVMH Moet Hennessy Louis Vuitton SE, bought a majority stake in GXG in 2016. The company, founded in 2007, operates more than 2,100 stores in China and employs over 4,000 workers, according to a November statement.
GXG ran the best-selling men’s clothing shop during the Singles’ Day sale on Alibaba Group Holding Ltd.’s Tmall e-commerce platform in 2016, the statement shows. Its name stands for “Go-Getter Mix Glitterati,” according to the company’s website.
Retail companies were involved in $6 billion of equity offerings in Hong Kong over the past five years, data compiled by Bloomberg show. Shares of Chinese fashion retailer JNBY Design Ltd., which debuted in 2016, have more than doubled in Hong Kong trading over the past year.
A representative for GXG didn’t immediately respond to an email and phone calls seeking comment, while an official at L Catterton Asia declined to comment.
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