Esprit raises $812.9m in share sale, tries to rebuild brand
HONG KONG (AFP) - Clothing retailer Esprit announced on Friday that it had raised around US$666.9 million (S$812.9 million) via a rights issue as it tries to rebuild its brand with a multibillion-dollar four-year transformation drive.
A total of around 646.1 million shares were sold at HK$8 (S$1.25) each. When the share sale was announced last month, Esprit said it wanted to raise US$677 million.
Funds raised from the new share sale will be used for "refurbishing existing stores", "developing the supply chain", and "fuelling future expansion plans", the company said.
Esprit, founded in San Francisco in 1968 and headquartered in Hong Kong, has announced its exit from Spain, Denmark and Sweden to focus on Asia, especially China, as part of a transformation after it saw a 98-per-cent plunge in net profit last year.