After raising $11 million from private equity firm Blue Point Capital Partners, China’s HAYA Retail is considering an initial public offering in China, and is eyeing overseas expansion, Reuters reported. HAYA is China’s largest retail space solution provider, and works with brands including Gucci and Swatch. HAYA owns factories in Beijing, Shanghai and western Chengdu. The new funding will help the company build a new plant in Shanghai and upgrade its design capacity, Reuters said.
(Reuters) – HAYA Retail, China’s biggest retail space solution provider, is eyeing overseas expansion and a domestic initial public offering after raising $11 million from U.S. private equity firm Blue Point Capital Partners, its founder and chairman Michael Yang said on Monday.
HAYA, whose clients include luxury brands such as Christian Dior (DIOR.PA), Gucci and Swatch, may set up subsidiaries abroad or acquire foreign companies as part of its expansion strategy, Yang told Reuters in an interview.
HAYA also plans to sell shares publicly in three to five years, he said, without saying how much it aims to raise.
“Nearly all foreign retail brands are rushing into China, where robust economic growth is fuelling a consumption boom,” Yang said by telephone. “This is a niche market that has just taken root.”
Cosmetics brands such as Estee Lauder (EL.N) Olay are adding retail counters in China while luxury brands including IWC are opening new shops in the country, creating demand for high-end space design and construction, a market that Yang estimated to be worth at least 10 billion yuan.
HAYA, which has the biggest market share with more than 400 million yuan in annual sales, expects its revenue to grow 30-50 percent a year, fuelled by Blue Point’s recent investment, Yang said.
HAYA owns factories in Beijing, Shanghai and western Chengdu and will use the new funding to build a new plant in Shanghai and upgrade its design capacity.
Yang has also formed partnership with U.S. architecture and design firm Callison through a separate architecture firm he founded. ($1=6.83 Yuan) (Reporting by Samuel Shen; Editing by David Chance)