Qingdao Kutesmart, a China-based bespoke fashion provider, has filed for a RMB356m ($50.4m) initial public offering that will enable diversified conglomerate Fosun to exit, DealStreetAsia reported yesterday.
The company intends to issue up to 60 million shares on the Shenzhen Stock Exchange’s ChiNext board priced at RMB5.94 each. It has appointed Zhong De Securities as lead underwriter for the offering.
Kutesmart operates a smart manufacturing system that enables it to produce suits, shirts and coats on behalf of fashion brands and apparel providers that are tailored to a customer’s individual measurements.
The company generated a net profit of approximately $9.7m in 2019 from about $76m in revenue, according to the IPO filing. China is responsible for about 60% of that revenue, with the brunt of the rest coming from the United States.
Proceeds from the offering will fund construction of an intelligent garment factory in addition to investment in big data technology and research and development.
Fosun provided about $32m of funding for Kutesmart in 2015 through its Fosun RZ Capital unit. The Chinese Academy of Sciences subsequently invested an undisclosed amount in the company later the same year according to DealStreetAsia, though that has not been confirmed.
