Fung Group is exploring an initial public offering in Singapore for its retail brands unit that could value the business at about US$500 million ($665.8 million), according to people with knowledge of the matter.
The Hong Kong-based consumer goods company is working with a financial adviser on the potential first-time share sale of its unit Branded Lifestyle Asia, the people said, asking not to be identified as the process is private. The Fung Group is seeking to raise more than US$100 million from the IPO of its business housing retail brands in South Korea and Taiwan, in a listing that could take place as early as this year, the people said.
Deliberations are ongoing and details of the IPO such as size and timeline could change, the people said. A representative for the Fung Group declined to comment.
A first-time share sale would help catalyse Singapore’s market, which hosted only one deal so far this year — food court management firm YKGI Ltd., which raised US$12.6 million, according to data compiled by Bloomberg. That’s substantially down from US$332 million raised in the same period last year.
Branded Lifestyle Asia would join IPO candidates weighing listings in the city-state including Olam Group’s agricultural business Olam Agri and a real estate investment trust backed by Thai conglomerate DTGO Corp.
Founded in Singapore, fashion retailer Branded Lifestyle Asia operates 326 stores in South Korea and 120 stores in Taiwan, and plans to expand across Southeast Asia, according to its website. The company has a 15.6% share of the market for children’s and baby’s fashionwear in South Korea as of 2021, and sells Roots, a Canadian outerwear brand, in Taiwan, the site shows.
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Fung Group traces its history to 1906 with the founding of Li & Fung in Guangzhou, China, according to its website. The Fung family and GLP Pte delisted Li & Fung and took it private in 2020. Fung Group’s businesses also include Toys“R”Us Asia, Global Freight Services and furniture company Living Style Group.
