Jiangnan Buyi Listed In Hong Kong Is Not Popular With Investors.

Brand JNBY

Listing in Hong Kong is not sought after by investors, and its issuing price is close to the lower and lower limit, which is only slightly oversubscribed.

According to the results of the allotment issued by Jiangnan Buyi, it received 792 valid applications in Hong Kong and subscribed 16 million 450 thousand shares together, that is, the shares were slightly oversubscribed in Hong Kong by 32%, and the rate of signing was 100%.

The stock was priced at 6.4 yuan in the lower limit of close to the price of the stock. The original offering range was 6.08 yuan to 7.73 yuan per share.

Fig. a shop of JNBY, a woman's clothing in Jiangnan Buyi group.

Reporters earlier reported that the group only introduced a basic investor, Tian Hai International Holdings, with a subscription amount of US $15 million.

Tian Hai is registered in Hongkong. Its parent company Tianhai Lace Co. and Ltd are textile manufacturing companies specializing in the design and manufacture of lace and other fabrics.

02199.HK brand investor.

A noteworthy market background is that domestic consumers' demand for clothing and other daily categories is weakened.

According to the data released by the National Bureau of statistics on consumer goods in September 2016, China's clothing market increased by only 6.7% in September, which is the worst performing category.

In September 2016, the total retail sales of consumer goods in China totaled 27976 billion yuan, up by 10.7% compared with nominal growth, and the actual growth rate was 9.6% after deducting price factors.

From 1 to September 2016, China's total retail sales of consumer goods totaled 238482 billion yuan, an increase of 10.4% over the same period last year.

With a view of the retail market in the first 9 months of this year, the growth rate of consumer goods in China has been greatly shrinking, indicating that China's economic slowdown is restraining the public's spending power.

In the 9 months ended March 31, 2016, the total income of the group was 1 billion 535 million yuan, 70% came from women's clothing JNBY, and the profit was about 213 million, an increase of about 13.9% over the same period last year.

Gross margin increased from 58% in fiscal 2014 to 61.4% in fiscal 2015, and further increased to 62.6% in fiscal 2016.

At present, the group has more than 1255 stores, including 404 self operated stores, 820 distributors and 31 overseas stores.

Last April, the domestic women's clothing landed on the IPO market. At that time, Shenzhen's costumes raised 700 million yuan in domestic A shares.

Over the past 3 years, a total of 25 domestic clothing groups have been listed in the mainland and Hongkong, and the amount of financing has exceeded US $2 billion 200 million.

However, due to the cold capital market and the challenges faced by the fashion retail market, stocks in most of these listed apparel groups have fallen. For example, Ke Eli Till, a domestic 03709.HK in Hong Kong, has accumulated more than 35% in the past 6 months.

Taiping bird clothing is also included in the capital market this year. In July of this year, Taiping bird clothing has been submitted to IPO for application. It intends to issue no more than 105 million shares on the Shanghai stock exchange, which accounts for no more than 20% of the total share capital.

In addition, HKEE international, the main rival of Taiping bird's clothing, is also looking for IPO. According to Bloomberg's disclosure, Heji international has chosen a Chinese investment bank to be responsible for its listing.

In 2011, LVMH's investment fund L Capital Asia bought its 10% stake at $200 million, when Heji International announced its valuation of $2 billion.

The group will be listed on the main board of the Hongkong stock exchange next Monday with a net financing of HK $592 million.