Hong Kong’s Fung Group weighs retail unit IPO in Singapore, say sources
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A first-time share sale by the Fung Group will help catalyse Singapore’s market, which has hosted only one deal so far this year.
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SINGAPORE – The Fung Group is exploring an initial public offering (IPO) in Singapore for its retail brands unit that could value the business at about US$500 million (S$665 million), according to people with knowledge of the matter.
The Hong Kong-based consumer goods company is working with a financial adviser on the potential first-time share sale of its unit Branded Lifestyle Asia, the people said, asking not to be identified as the process is private.
The Fung Group is seeking to raise more than US$100 million from the IPO of its business housing retail brands in South Korea and Taiwan, in a listing that could take place as early as 2023, the people said.
Deliberations are ongoing and details of the IPO, such as size and timeline, could change, the people said. A representative for the Fung Group declined to comment.
A first-time share sale would help catalyse Singapore’s market, which has hosted only one deal so far in 2023 – that of foodcourt management firm YKGI, which raised US$12.6 million, according to data compiled by Bloomberg. This is substantially down from the US$332 million raised in the same period in 2022.
Branded Lifestyle Asia would join IPO candidates weighing listings in the city-state, including Olam Group’s agricultural business Olam Agri and a real estate investment trust backed by Thai conglomerate DTGO.
Founded in Singapore, fashion retailer Branded Lifestyle Asia operates 326 stores in South Korea and 120 stores in Taiwan, and plans to expand across South-east Asia, according to its website. The company had a 15.6 per cent share of the market for children’s and baby’s fashion wear in South Korea in 2021, and sells Roots, a Canadian outerwear brand, in Taiwan, the site shows.
The Fung Group traces its history to 1906 with the founding of Li & Fung in Guangzhou, China, according to its website. The Fung family and GLP delisted Li & Fung and took it private in 2020. Fung Group’s businesses also include Toys “R” Us Asia, Global Freight Services and furniture company Living Style Group. BLOOMBERG
