Rich Sport Co Ltd (RSP), Thailand's sole distributor of Converse footwear and sportswear, has submitted an IPO filing for listing on the Stock Exchange of Thailand this year, aiming to raise funds for business expansion.
Of the 200 million IPO shares, the company will allocate 195 million shares, or 25.32% of total registered capital, to the public, while the remaining 5 million shares, or 0.65% of registered capital, will be allotted to employees and subsidiary firms.
The company has total registered capital of 770 million shares, with paid-up capital of 570 million shares at a par value of one baht each.
Rich Sport Holding owns 30% of shares, and the rest is held by three members of the Wongpaitoonpiya family at 23.33% each. After the IPO, Rich Sport Holding's share will be diluted to 22.21%.
"We aim to be a manufacturer and distributor of an international leading fashion brand," said Papitch Wongpaitoonpiya, chief executive of Rich Sport.
The company has been a maker and distributor of the Converse brand for 14 years in Thailand. As of June, the company had 41 retail shops and 114 sales counters at various department stores.
For the first six months of 2017, Rich Sport reported revenue of 601.12 million baht and a net profit of 122.16 million baht. Of total revenue, 80% came from footwear.
Some 35% of revenue is generated by large shops, with department stores and wholesale handling 46% and 19%, respectively.
Rich Sport and its subsidiaries raked in revenue of 1.36 billion baht in 2016, 1.12 billion in 2015 and 816.72 million in 2014.
Net profit stood at 298.76 million baht in 2016, 246.09 million in 2015 and 75.99 million in 2014.
Somphop Keerasuntonpong, president of Finansia Syrus Securities, Rich Sport's financial adviser, said the company has seen average sales growth of 29% and gross profit margins of around 50% the past three years. Revenue in 2018 is expected to pick up as the economy recovers, Mr Somphop said.
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