Menswear Brand GXG Parent Company Hears Through Hkex, IPO Is Coming Soon.

According to the HKEx disclosure, in April 17th, Mohan Group Holdings Limited, the parent company of China menswear brand GXG, had heard through the Hong Kong stock exchange.

In March of this year, the group submitted a IPO application to the HKEx to raise HK $2 billion 300 million, including Credit Suisse, Citigroup and international bank.

The proceeds will be used to repay debt and reduce financial costs, expand brand portfolio, upgrade offline retail outlets to smart stores, acquire land and build free advanced intelligent logistics centers and supplement General operating capital.

Founded in 2007, it has: GXG fashion men's wear, GXG jeans fashion men's wear, gxg.kids fashionable children's wear, Yatlas light life sports and 2XU professional sports brand management authorization, and also involves shoes, underwear and other categories.

The core brand GXG target group is 25~35 years old and has certain income and taste of urban elite men. Currently there are FOR LIFE (daily money), FOR UP (tidal current), FOR MIX (cooperative funds), FOR ALL (entry menu) and so on.

In the year 2016, 2017 and December 31, 2018, the company recorded revenues of 3 billion 18 million yuan, 3 billion 510 million yuan and 3 billion 787 million yuan, of which GXG brand accounted for 66.1% of the earnings of mosang group in 2018.

In terms of sales channels, as of the end of 2018, the proportion of offline channels accounted for 64%, and online channels accounted for 35.7%.

In January 2016, Yang Herong, a major shareholder of Mu Shang Group, founded Alpha through its Updragon company and acquired 70% stake in Alpha by the company.

Since then, L Catterton and Crescent Point have respectively held 73% and 27% respectively to set up a company Glorious Cayman, which acquired a 100% stake in Alpha through a wholly-owned subsidiary, with a cash price of 2 billion 839 million yuan.

Author: Wang Jiaqi