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Topsports International Starts Gauging Interest for $1 Billion Hong Kong IPO

By P.R. Venkat

 

Topsports International Holdings Ltd. has started gauging investor interest in its planned Hong Kong initial public offering, according to a term sheet seen by The Wall Street Journal.

The Chinese sportswear retailer is planning to raise as much as $1 billion in the IPO with an aim to list by the end of the third quarter, a person familiar with the process said.

The term sheet didn't specify the number of shares the company intends to sell or the amount it is seeking to raise.

Topsports, which counts Chinese investment firm Hillhouse Capital Group as a substantial shareholder, had filed for the IPO in June.

The company intends to use nearly 80% of the IPO proceeds to repay loans, and the rest will go toward investment in technology and meeting working-capital needs, the term sheet showed. The company has 8,343 stores operating in China as of Feb. 28.

Morgan Stanley, Bank of America Merrill Lynch and Credit Suisse are advising Topsports on the IPO.

 

Write to P.R. Venkat at venkat.pr@wsj.com

 

(END) Dow Jones Newswires

September 09, 2019 01:17 ET (05:17 GMT)

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