ONE OF China’s largest outdoor clothing brands, whose board members include former Sportingbet chief Nigel Payne, has announced plans today for a £40m float on London’s junior market.
Fraspens, based in Quanzhou, south east China, makes outdoor clothing, footwear and accessories sold in 580 outlets across China. The company is China’s third largest local outdoor clothing brand by revenue, according to Euromonitor.
The retailer hopes to raise £4m by selling new shares when it floats on Aim next month to expand in the provinces it already trades in and to grow into other regions where it does not yet have a presence.
Payne, who joined as a non-executive director this year, said the company has already attracted interest from investors ahead of its UK roadshow: “People know that China’s economy is expanding fast, they understand that leisure spend is going up and that the outdoor market is growing by 26 per cent.”
Fraspens, founded in 2007, is led by John Bautista, a Chinese retail veteran who owns a 60 per cent stake. It generated £39m of revenues and £9.1m of earnings last year.
BEHIND THE DEAL
DANIEL STEWART | RICHARD SHACKLETON
1 Daniel Stewart director Paul Shackleton has specialised in the small to mid cap corporate finance sector since 1996.
2 He previously worked in the small company team at UBS and helped to found Bridgewell Securities before joining Daniel Stewart eleven years ago.
3 Shackleton’s relationship with Nigel Payne dates back 10 years when Daniel Stewart was broker to Sportingbet. He also acted on the 2010 float of Payne’s private jet firm Hangar 8.
Daniel Stewart is acting as the sole NOMAD and broker on the deal to bring Fraspens to AIM. Shackleton is joined on the Fraspens advisory team at Daniel Stewart by Emma Earl and Harrison Clarke. Abchurch Communications is acting as the group’s PR adviser.