V3 GROUP, which owns brands such as OSIM and TWG Tea, has filed for an initial public offering (IPO) on the main board of The Stock Exchange of Hong Kong (SEHK).

V3 Brands Asia, an investment holding company wholly-owned by V3 Group - made an application to the Hong Kong Exchange for a global offering on Monday (Feb 28).

The application proof redacted pricing details, the size of the offering and the number of shares up for grabs.

The move comes as the lifestyle products group posts a surge in profit for the 9 months ended Sep 30, 2021. Profit after tax for the period stood at S$72.7 million, 2.5 times the S$28.7 million recorded in the 9 months ended Sep 30, 2020. Revenue was up 32.8 per cent to S$332.8 million, from S$250.6 million in the year-ago period.

For the full year ended Dec 31, 2020, revenue was 15.6 per cent higher year on year at S$377.8 million, from S$326.9 million in FY2019. Profit after tax stood at S$43.4 million, 58.9 per cent higher than S$27.3 million in the year-ago period.

V3's higher revenue during the 2 years ended Dec 31, 2020, and 9 months ended Sep 30, 2021, was attributed to higher sales as a result of increased consumer demand for lifestyle and wellness products; targeted marketing and sales activities; and the success of blockbuster products.

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The group owns the OSIM brand - known for its massage chairs and relaxation products; luxury tea brand TWG Tea; nutritional supplement retailer ONI Global; and Futuristic - a Singapore-headquartered manufacturer of store fixtures.

Founded by Ron Sim, the group opened its first store in Singapore in 1983 and later in Hong Kong in 1986. It also expanded to Taiwan and Malaysia before officially launching the OSIM brand name in 1993 and expanding to China.

OSIM listed on the Singapore Exchange in 2000, but delisted in 2016.

Fast forward to today, the Greater China market – which includes Hong Kong – comprises 271 out of 338 of the group’s own stores worldwide. By comparison, there are 22 stories in Singapore and 45 in Malaysia, as at Sep 30, 2021. 

In terms of revenue, the Greater China area raked in 55.7 per cent or S$185.4 million in the 9 months ended Sep 30, 2021.

A majority of net proceeds from the offering will be used to repay existing syndicate loans with a drawn-down amount of S$196.6 million. 

This includes digitalisation initiatives, enhancing V3’s mechanical engineering technology, marketing activities, expanding its store network and refurbishing existing stores, as well as “strategic alliances or acquisitions” to diversify V3’s product portfolio. The rest will be used for general corporate purposes and funding working capital needs. 

Here are some key milestones of the group:

1979: Founder Sim commences sole proprietor business retailing household goods.

1983: Sim incorporates a private company in Singapore to take over the sole proprietorship, which, at the time, sold health and wellness products. The group launches its first Singapore store. 

1986: The group opens its first store in Hong Kong.

1987: First Taiwan store opens.

1992: The group expands to Malaysia with its first store. 

1993: Official launch of OSIM brand name and the launch of OSIM products in mainland China. 

1995: The company establishes Daito-OSIM in partnership for the manufacture of health and wellness products – especially massage chairs. Daito is a Japanese manufacturer which Sim has had a business relationship since 1981. 

2000: OSIM International lists on SGX.

2001-2015: The group expands its franchise network to Thailand, the Philippines, South Korea, India, the United Kingdom, Myanmar, Bahrain, New Zealand, Australia, Indonesia, Cambodia and Canada through franchise agreements. 

2016: OSIM delists from SGX. Expands franchise network to the United States. 

2017: Sim applies to list V3 in Hong Kong.

2018: V3's application to list in Hong Kong lapses.

2019: V3 obtains investment from Veritas Capital Investments, an affiliate of KKR. Its franchise network expands to the United Arab Emirates. 

2020-2021: The group extends its franchise network to the Kingdom of Saudi Arabia and Vietnam.

READ MORE: 

• After dash to HK, Ron Sim aims to strike it right with V3 IPO

• V3's HK IPO journey not smooth sailing for Osim founder

• After SGX exit, OSIM heads for HK listing as V3 Group

• Ron Sim applies to list V3 in Hong Kong

• Ron Sim, Taha Bouqdib to bring TWG Tea, Bacha Coffee under V3 Gourmet Group

• V3 drives ahead with digital solutions

• Ron Sim's V3 Group eyes digibank bid with EZ-Link, FEO, Heliconia

• Ron Sim's V3 Group sets up fintech unit, hires ex-Fullerton, Temasek veteran