Shandong Ruyi Group, the Chinese owner of the Lycra Company, is to list the unit’s shares on the Science and Technology Innovation Board (STIB) in a bid to drive growth in Asia.
Ruyi Group made the announcement on Friday (26 July) at the launch ceremony of Lycra’s Science and Technology Innovation Board in Jining headquarters, noting “Lycra is landing on the capital market and entering a substantive stage of operation.”
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Ruyi said: “It is significant that Ruyi Group helps Lycra enter China’s capital market and builds the whole industrial chain layout of the high-tech textiles and fashion brand.
“As the top business in the field of global high-tech materials for textile fibres, Lycra has the absolute competitive advantage, since Lycra is the STIB preferred applicant who provides high-performance composites for the industry. Lycra is the only brand in producing high-end spandex, which contributes more than 25% of the industry revenue with 11% of the output of the industry and represents the most advanced technology in the field of spandex. Also, it monopolises all the market share of high-end spandex.
“With the help of Ruyi Group, the new chemical fibre products launched by Lycra could achieve the large-scale production in a short time, which could offset the gap in Lycra’s capacity in the Asian region. Meanwhile, Asia is also a huge market for fibre consumption with a strong demand for high-end textile and apparel products, and new fibre products. This could help Lycra quickly occupy new profit growth points as well,” the company said.
Speculation Ruyi was mulling an IPO for the unit began in April with a Bloomberg report suggesting it could fetch about US$500m.
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By GlobalDataShandong Ruyi completed its acquisition of US-based fibre producer Invista’s Apparel and Advanced Textiles business (A&AT) – including its Lycra spandex/elastane brand at the beginning of February. Japanese conglomerate Itochu Group, a business partner in Shandong Ruyi, also invested in an undisclosed stake in the business.
The new company operates as an independent subsidiary called The Lycra Company, making advanced fibre and technology solutions for the apparel and hygiene industries. As well as Lycra, the purchase includes brands such as Lycra HyFit, Lycra T400, L by Lycra, Coolmax, Thermolite, Elaspan, Supplex, Tactel, and Terathane.
The Ruyi Group focuses on a vertical operation spanning from raw materials (such as spandex) and textile processing, to the design and sale of apparel. Since 2016, the group has acquired several international luxury brands including Aquascutum, Sandro, Maje, and Claudie Pierlot.
