Footwear Retailer Belle Preps for $1B Hong Kong IPO

Chinese footwear and fashion brand Belle is looking to go public on the Hong Kong markets with an initial public offering that could be worth $1 billion.

According to media reports this week, sources close to the matter say deliberations are ongoing in the offering, which would come five years after the retailer’s owners – Hillhouse Capital and CDH Investments – took the firm private in a $6.8 billion deal.

Based in Shenzhen, China, Belle brands include Staccato, Tata and Basto. The company’s net income for the nine months ending in November of last year was 2.3 billion yuan ($361.5 million). The IPO is being sponsored by Bank of America Corp. and Morgan Stanley.

Bloomberg News noted the IPO would be significant for two reasons. First, it would end a drought of sizable sales deals by consumer firms on the Hong Kong market, dominated recently by postings by tech and health firms from China.

Second, it would be the largest IPO by a consumer brand since detergent maker Blue Moon Group Holdings went public in December 2020 in a $1.4 billion listing.

Read more: Hong Kong Markets See First SPAC Deal

The news came at the same time that the Hong Kong market saw its first ever SPAC (special purpose acquisition company) deal close, with Aquila Acquisition Corp. raising $128 million.

SPACs deals occur when investors form shell corporation to raise money before seeking out a private company to merge with. The practice has been popular in recent years, seen as a faster alternative to initial public offerings

Aquila, named for the constellation represented by an eagle, has said it wants to merge with companies in sectors like green energy, life sciences and advanced technology in Asia, ideally in China. Nine additional companies have filed to list in Hong Kong as SPACs.