According to local sources, Pou Sheng is being pitched at a sizeable discount to branded Chinese retailers like Belle International or Li Ning. Observers say a discount is warranted because Pou Sheng doesn’t have a brand of its own, while others disagree citing its extensive distribution network. The company currently has over 9,000 points of sales which offer sportswear products for a large number of international and domestic brands including Nike, Adidas, Reebok, Puma, Converse, and Hush Puppies.
In a release to its shareholders, Yue Yuen stated that the separate listing of Pou Sheng will allow the company to ‘establish a higher profile with the ability to access the debt and equity capital markets in its own right to fund the development and expansion of the retail business.’ At the same time, it will allow Yue Yuen to focus on its OEM and ODM business. The parent company will still own 56% of Pou Sheng after the IPO.
The trading debut is scheduled for June 6.