DGAP-News: Powerland AG: Powerland plans an IPO in the Prime Standard of the Frankfurt Stock Exchange
(firmenpresse) - DGAP-News: Powerland AG / Key word(s): Letter of Intent/IPO
Powerland AG: Powerland plans an IPO in the Prime Standard of the
Frankfurt Stock Exchange
11.03.2011 / 08:09
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Powerland plans an IPO in the Prime Standard of the Frankfurt Stock
Exchange
- Producer of luxury women's handbags is aiming for a listing in the
Prime Standard
- The targeted proceeds from the IPO of approximatelyEUR 80 - 90 million
will primarily be used to finance the continued expansion
- The Chinese market for luxury products offers strong growth potential
driven by continued urbanisation, increasing consumption levels and the
emerging middle-class in China
- Macquarie is acting as Global Coordinator and Bookrunner
Frankfurt am Main, 11 March 2011 - Powerland AG, a leading Chinese producer
of fashionable luggage and bags with a main focus on high-quality luxury
women's handbags made of genuine leather, is preparing for its IPO in the
first half of 2011. Powerland aims to obtain a listing in the Prime
Standard of the regulated market on the Frankfurt Stock Exchange. Macquarie
is acting as Global Coordinator and Sole Bookrunner. Powerland plans to
raise approximately Euro 80 - 90 million from the IPO and use these
proceeds primarily to continue the successful expansion of its retail
distribution network in China including the opening of self-operated
flagship stores in prime locations in Tier 1 and Tier 2 cities in China.
Strong market position in China
Powerland operates two business segments - the luxury segment and the
casual segment. Within the luxury segment, Powerland is active in the
Chinese market for luxury products and sells fashionable ladies' handbags,
luggage, wallets and since 2010 also handbags for men, briefcases and belts
- all from genuine leather - under the premium brand 'Powerland.' The
products within this business segment target the middle to upper segment of
the Chinese market for luxury bags and luggage.
Within the casual segment, Powerland designs, produces and sells casual
bags made from textile or synthetic leather targeted at the middle and
lower price segments. Products in this segment include handbags, sports
bags, backpacks, luggage, travel bags, laptop bags, tool boxes, coolers and
accessories (e.g. men's and women's wallets). Theseproducts are marketed
under Powerland's second brand, 'Sotto,' or in supermarkets and department
stores by third parties as so-called 'white label products.' Powerland's
main focus lies on the consistent expansion of the luxury segment using the
Powerland brand and expects to significantly increase its market share in
China. Powerland aims to boost revenue contribution from its luxury segment
from approximately 50% to 70% over the next three years.
Fast-growing distribution network for the Powerland brand
Products within the luxury segment are marketed exclusively in China via a
network of Powerland branded stores, which are operated by independent
distributors. As at 31 December 2010, Powerland's retail sales network
consisted of 110 stores which included one Flagship Store in Beijing, five
Exclusive Stores located primarily in shopping centres and 104 designated
Powerland sales areas in department stores (shop in shops). In the area of
design, Powerland works with the Italian design studio Francesco Turchi, a
former chief merchandise and product manager at Gucci. Retail prices for
Powerland's products in the luxury segment typically range from RMB 2,000
(EUR 230) to RMB 7,000 (EUR 800). Powerland, originally established as a
company in China in 2003, launched its luxury segment at the beginning of
2008 and has experienced significant growth in sales and profits since
then.
Expansion in the Chinese market
Powerland intends to invest the proceeds from the IPO in the expansion of
the network of Powerland stores in order to continue its growth track. The
largest proportion of the proceeds from the IPO will be used for
purchasing, furnishing and decorating new Powerland stores in China. The
focus of the expansion will be on large cities such as Shanghai and Beijing
as well as provincial capitals. During the next three years, Powerland aims
to increase the number of stores from 110 to approximately 300.
Significant long-term growth potential for branded luxury goods in China
Powerland offers its luxury products exclusively within the Chinese market
which is expected to experience consistently strong growth for years to
come. As a result of growth in the gross domestic product, and the
continuing urbanisation of China, retail sales rose by 14.9% in 2008, 16.3%
in 2009 and 14% in 2010. Moreover, the Chinese Luxury market in particular
has experienced significantly higher than average growth rates of 24.8 %
over the past 3 years.
Factors critical for success, especially in the upper end of the Chinese
market, include high-quality products, attractive international-style
design and brand awareness. Powerland is in a unique position to capitalize
on the strong growth in consumption of the emerging Chinese middle class by
offering an Italian-designed product, with high product quality at
affordable prices for this fast growing segment. In its efforts to develop
the Powerland brand, the company continually invests not less than 10% of
its sales in marketing with a focus on television, print and media
advertisements, online marketing and increasingly point-of-sales marketing
and promotion activities.
Powerland is on fast growth track with attractive profitability
Between 2008 and 2010, Powerland achieved significant increases in sales,
with an average annual growth rate of 43.5%. Total Group sales increased
from EUR 54.7 million for 2008 to EUR 82.2 million in 2009 and to EUR 112.6
million for 2010. At the same time, Powerland's net profits rose from EUR
10.8 million to EUR 18.0 million for 2009 and to EUR 22.6 million for 2010.
This corresponds to an average annual growth rate for profits of 44.6%.
Sales within the luxury segment rose even faster from approximately EUR 3.4
million in 2008 to approximately EUR 26.3 million in 2009 and to EUR 52.8
million in 2010. As a result, in 2010 sales in the luxury segment had
already reached approximately 47% of total sales following only three years
of operations. Within the casual segment, sales rose from EUR 51.2 million
in 2008 to EUR 55.9 million in 2009 and to EUR 59.8 million during 2010. At
the end of 2010, Powerland had 1,075 employees.
Listing in the Prime Standard on Frankfurt Stock Exchange
The company is planning a public offer in Germany and Luxembourg as well as
private placements to institutional investors outside Germany, Luxembourg
and the United States. The transaction will primarily be composed of a
capital increase with the objective of raising approximately EUR 80 - 90
million.
Macquarie Capital (Europe) Limited will be acting as Global Coordinator and
Sole Bookrunner. Berenberg Bank is acting as Joint-Lead Manager.
The listing of Powerland in Europe also reflects the positioning of
Powerland as an Italian-designed brand in China offering international
style, affordable luxury products for its customers. Frankfurt Stock
Exchange offers a modern and attractive trading platform, which ensures
that a listing on Deutsche Börse provides a cost-effective and liquid
trading environment for international investors.
Additional information may be found under: www.powerland.ag
Disclaimer
This publication is not an offer of any securities for sale or a
solicitation of an offer to purchase any securities. Subject to approval by
the German Financial Service Supervisory Authority (Bundesanstalt für
Finanzdienstleistungsaufsicht), a prospectus will be published, which will
be available free of charge from Powerland AG and the syndicate banks. Any
shares will be offered exclusively on the basis of the prospectus required
to be approved by the German Financial Service Supervisory Authority.
This document is not an offer of securities for sale or a solicitation of
an offer to purchase securities in the United States. The shares of
Powerland AG (the 'Shares') have not been registered under the U.S.
Securities Act of 1933, as amended (the 'Securities Act') and may not be
offered or sold in the United States unless registered under the Securities
Act or pursuant to an exemption from such registration. There will be no
public offering of the Shares in the United States and the Shares will not
be registered under the Securities Act.
This document is only being distributed to and is only directed at (i)
persons who are outside the United Kingdom or (ii) to investment
professionals falling within Article 19(5) of the Financial Services and
Markets Act 2000 (Financial Promotion) Order 2005 (the 'Order') or (iii)
high net worth entities, and other persons to whom it may lawfully be
communicated, falling within Article 49(2)(a) to (d) of the Order (all such
persons together being referred to as 'relevant persons'). The Shares are
only available to, and any invitation, offer or agreement to subscribe,
purchase or otherwise acquire such securities will be engaged in only with,
relevant persons. Any person who is not a relevant person should not act or
rely on this document or any of its contents.
End of Corporate News
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115214 11.03.2011
Datum: 11.03.2011 - 08:09 Uhr
Sprache: Deutsch
News-ID 33448
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