Leading textile shipping firm Roly International Holdings said on Tuesday it is to spin off its wholly-owned buying agency subsidiary, Linmark Group Limited, through an IPO on a stock exchange.

Linmark ships for a range of clients including the Zellers and Bay Stores of the Hudson's Bay Co of Canada as well as famous brand names such as Calvin Klein Jeans, Chaps by Ralph Lauren and Speedo.

In a statement, the company said the aim of the proposed IPO is to raise the corporate profile of the sourcing and supply chain management division of the Roly Group and for Linmark to raise funds for expansion and development – possibly in China.

"Linmark is poised to benefit from China's entry into the WTO at a time when the global supply chain management industry is undergoing major changes," Roly's chairman Wang Lu-Yen said.

"The opening of the domestic retail market in China is also expected to create demand for supply chain management services within China."

He added that further details about the IPO, which is subject to approval from the relevant authorities, will be released at a future date.