Ruyi to list Lyrca business on China's new Science and Technology Innovation Board
today Jul 30, 2019
Following months of speculation about a possible IPO, Ruyi Group has announced that it is preparing to list the Lycra Company on China’s newly created Science and Technology Innovation Board (STIB) as it looks to push growth in Asia.
Talk of an IPO began circulating when Ruyi completed its acquisition of Lycra, formerly Invista's Apparel & Advanced Textiles division, from American chemical corporation Koch Industries for an estimated $2 billion in January of this year.
Ruyi subsequently confirmed the plans itself before a Bloomberg report claimed in April that the Chinese company had contracted Goldman Sachs to scout out Lycra’s stock market options for an IPO valued at $500 million.
While the company’s latest announcement did not specify how many shares will be offered on the STIB, Ruyi was keen to highlight Lycra’s strategic advantage “as the top business in the field of global high-tech materials for textile fibers” in its release.
The company also pointed out that on July 22, the STIB’s first day of trading, shares on the board rose an average of almost 140%.
Moving forward, the plan is for Lycra and Ruyi to benefit each other mutually, with the Chinese conglomerate providing Lycra with fresh investment and production capacities, while the synthetic fabric manufacturer feeds its new parent company with advanced fiber and technology solutions.
The hopes are that Lycra will also be able to leverage Ruyi’s significant production capacities to capitalize on new growth opportunities in Asia, a market with strong demand for high-end textiles.
Ruyi Group currently owns close to 30 fashion brands around the world and has approximately 6,000 stores in 81 countries and territories.
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