IDG Cornerstone Investor in Sitoy IPO

Venture capital firm IDG has agreed to buy 22 percent of handbag maker Sitoy shares on offer and Milan-based Prada is purchasing 19.6 percent said IFR, a Thomson Reuters publication. Founded in 1968, Hong Kong-based Sitoy makes handbags and leather goods for Prada and other global brands.

(Reuters) – Italian fashion house Prada SpA, whose June IPO was the biggest in Hong Kong this year, is buying nearly one-fifth of the up to $130 million initial public offering of local handbag maker Sitoy Group, IFR reported on Monday, citing sources with knowledge of the deal.

Milan-based Prada, which raised about $2.5 billion in its Hong Kong IPO, agreed to buy 19.6 percent of Sitoy shares on offer, with venture capital firm IDG buying 22 percent, said IFR, a Thomson Reuters publication. The sources could not be named because details of the transaction are not yet public.

Commodities giant Glencore raised nearly $10 billion in a Hong Kong and London IPO in May, with most of the funds raised in the London portion of the offering.

Founded in 1968, Hong Kong-based Sitoy makes handbags and leather goods for Prada and other global brands. The company will start bookbuilding for the IPO on Nov. 21 with pricing slated for Nov. 29, IFR said.

Bank of America Merrill Lynch was hired as sole lead on the deal, IFR reported. (Reporting by Fiona Lau; Writing by Elzio Barreto; Editing by Jacqueline Wong)