Chinese clothing retailer eyes US$500m IPO in city

Chinese urban outdoor brand Beneunder, which is backed by Sequoia Capital, is reportedly planning to raise up to US$500 million (HK$3.9 billion) in an initial public offering in Hong Kong.

The Shenzhen-based firm is seeking to raise US$300 million to US$500 million in the share sale, Reuter's International Financing Review reported.

Founded in 2013, the company started its business by producing double-layered umbrellas for protection against the sun, and now offers a wide range of outdoor wear and accessories including hats and footwear, according to a regulator filling.

Beneunder said it is the largest sun protection apparel brand in China in terms of both total retail sales and online retail sales in 2021, citing a report from China Insights Consultancy.

Its online retail sales of sun protection apparel in 2021 was five times more than that of the second-largest brand, according to CIC.

The company recorded revenues of 2.41 billion yuan (HK$2.97 billion) last year over revenues of 794 million yuan in 2020.

Revenues from non-sun protection products increased fivefold to 495.7 million yuan in 2021, with the contribution to total revenue increasing from 0.7 percent in 2019 to 20.6 percent in 2021.

Beneunder posted an adjusted profit of 136 million yuan last year.

China International Capital Corporation and Morgan Stanley are the joint sponsors for the proposed offering.

Meanwhile, Chinese online question and answer website Zhihu (2390) opened its retail book yesterday for a dual primary listing in Hong Kong which could raise up to HK$1.34 billion.

The Beijing-based company attracted about 14.29 million via margin financing on the first day of offering.

The Tencent (0007)-backed firm, which expects to debut on April 22, has issued 26 million Class A shares not higher than HK$51.8 apiece, with a minimum investment of HK$5,232.2 per board lot of 100 shares. Credit Suisse, J P Morgan, China International Capital Corporation, and CMB International are the joint sponsors for the deal.

The company had an average monthly active user of 99.6 million in the final quarter of last year and an average monthly visitors of 500 million, it said in the preliminary prospectus.