(Yicai Global) Dec. 28 -- Trendy Group Co., a Chinese fashion house backed by international fashion giant LVMH, has set its sights on raising CNY3.24 billion (USD495 million) in an initial public offerings of shares in Shanghai.
The funds will be used to open new stores among other investment areas, the Guangzhou-based company said in a statement.
L' Capital Asia, a subsidiary investment fund platform of France's LVMH Moët Hennessy Louis Vuitton SE [EPA:MC], bought a minority stake in Trendy for nearly USD200 million in 2012, making it the fashion conglomerate's third-largest shareholder.
Trendy has several well-known fashion brands in China, including Ochirly and Trendiano. In recent years, it has acquired Italy's Sixty Group, owner of Miss Sixty and Energie, and the China rights for Britain's SuperGroup Plc's Superdry brand and Dutch brand Denham through a joint venture.
Trendy had net profit of about CNY1.1 billion on revenue of CNY6.4 billion in 2016. Though the group has established a diversified brand structure, most of its earnings still come from its core brand Ochirly, the profits of which accounted for over 45 percent of total group revenue in the first half of this year.