Shares of garment manufacturer Crystal International Group made their debut in Hong Kong today (3 November) – with key customers Fast Retailing and L Brands the cornerstone investors.
The HKD3.82bn (US$490m) initial public offering will deliver proceeds of around HK$3.66bn (US$469m) to the world’s largest apparel maker by volume, which it will invest in growing its garment manufacturing capacity and expanding into fabric production in Asia.
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The company says Fast Retailing and L Brands have subscribed for US$20m and US$10m in shares respectively, “demonstrating their confidence about the company’s prospects and their trust in its management team.”
A versatile original design manufacturer of apparel with immense production capacity, Crystal International was ranked first by production volume and second by production value in the global apparel manufacturing industry.
It also boasts seven out of the top ten apparel brands as its customers, which it supplies with a range of lifestyle wear, denim, intimates, sweaters and sportswear, and outdoor apparel.
It works closely with its clients, including Fast Retailing (owner of brands including Uniqlo and GU), H&M, Gap and L Brands (Victoria’ s Secret, Pink), through strategic partnerships, and adopts a co-creation business model that offers its customers the right product at the right time at the right cost.
Supporting this business model is a production network that spans 20 self-operating manufacturing facilities in five countries: China, Vietnam, Cambodia, Bangladesh and Sri Lanka. Between them they have a combined workforce of 70,000 people and deliver around 350 million pieces of apparel a year.
Crystal International will expand its business of sportswear and outdoor apparel, increase its production capacity, especially that in Vietnam and Bangladesh; and extend the scope of its business upstream to fabric production.
Crystal Group eyes US$574m IPO to fund expansion
