Branded Lifestyle Asia lodges preliminary prospectus for mainboard IPO

FASHION retailer Branded Lifestyle Asia (BLA) on Wednesday (May 10) lodged a preliminary prospectus for an initial public offering (IPO) as it seeks a mainboard listing on the Singapore Exchange (SGX).

According to the preliminary prospectus lodged with the Monetary Authority of Singapore, BLA operates an apparel retailing business in Taiwan and South Korea.

The retailer operates over 300 stores in South Korea and 100 stores in Taiwan, according to its website. Its subsidiary Suhyang Networks in South Korea is a premium children’s and baby’s fashion retailer with a market share of around 15.6 per cent in 2021. It also distributes apparel under the Roots brand in Taiwan.

The prospectus lodgment follows a report last month that Hong Kong-based Fung Group was exploring an IPO in Singapore to list its retail brands unit BLA. Bloomberg reported in April that Fung Group was seeking to raise more than US$100 million from the IPO of its business housing retail brands in South Korea and Taiwan this year, which could value the business at about US$500 million. However, the report noted that deliberations were ongoing and details of the IPO, such as size and timeline, could change.

The offering’s size was not indicated in the prospectus. BLA said it intends to focus on the retail of premium fashion brands – particularly premium children’s and baby’s fashion brands – in South Korea, Taiwan and South-east Asia, including Singapore, Malaysia, Thailand, and Indonesia.

BLA said it intends to use the net proceeds from its offering to fund expansion plans in South-east Asia, including making potential acquisitions. It added that the proceeds would also be used for investments in information technology infrastructure, and partially repaying certain outstanding loans.

The group’s financial statements in the preliminary prospectus show BLA posted net profit of S$13.3 million for the financial year (FY) ended Dec 31, 2022, up from S$5.2 million in the previous FY. The company reported a net loss of S$4.3 million during the FY ended December 2020.

Revenue remained relatively consistent over the past three FYs. BLA reported S$320.1 million in revenue for FY22, slightly below the S$349.2 million in FY21 and S$322.8 million in FY20. The group specialises in children’s and baby’s fashion, with such revenue accounting for nearly three-quarters of group revenue in FY22.

As at Dec 31, 2022, the group had total assets amounting to S$313.3 million, including S$17 million in cash and cash equivalents. Its total liabilities stood at S$230.7 million. The group has eight directors on its board, led by independent non-executive chairman Timothy Chia, who also sits on the boards of Thai Beverage and Singapore Power.

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BLA’s potential listing could be a boost for the Singapore Exchange (SGX), which has not seen a mainboard IPO in over a year. Just one SGX IPO has taken place so far in 2023, with YKGI raising S$19.8 million in a Catalist listing in February.