Maxwell International Holdings, a Chinese footwear company in Fujian that designs, develops and manufactures shoes for brands such as Diadora, Brooks, Fila, Kappa and Yonex, through a subsidiary called Jinjiang Zhenxing Shoes Plastic Co., has applied for a listing on the Malaysian stock exchange in Kuala Lumpur.
The Chinese company, which set a subsidiary in Malaysia one year ago, is aiming to raise the equivalent of €6.12 million through a public offering of 63.75 million new shares worth 40 sen each. This is about double of what it had previously planned and would include a private placement of 43.75 million shares for selected investors. OSK Investment Bank has been appointed to work on the IPO.
In the financial year ended on Dec. 1, 2009, Maxwell recorded a net profit of 118.7 million renminbi (€13.0m-$17.8m) on revenues of RMB 583 million (€64.0m-$87.6m). Sales and profits grew by 40.8 percent and 50.4 percent in the first half of the subsequent financial year.
Maxwell says it intends to use the proceeds for various projects, including an expansion of its own R&D and manufacturing capabilities.
The company develops close to 1,000 designs every year. It has four production lines in Jinjiang. Straining its resources, which are limited to an annual normal capacity of 8 million pairs, it produced 11 million pairs of shoes in the past year, outsourcing a large part of the production. About 43 percent of the revenues of Zhenxing Shoes were obtained through outsourcing, and 43 percent of the proceeds from the IPO would be used to expand its manufacturing facilities over the next 24 months.
