HONG KONG, May 4 (Reuters) - Milan Station, a handbags retailer, is seeking to raise up to HK$270 million ($34.7 million) in an initial public offering in Hong Kong later this month, the South China Morning Post reported on Wednesday.
The Hong Kong-based retailer, which operates 14 outlets under the name Milan Station and France Station in Hong Kong, Macau and Beijing, plans to set up 24 new outlets in major Chinese cities, including Beijing, Shanghai, Guangzhou, Chengdu, and Hangzhou, in the next two years tapping the cash-rich mainlanders’ appetite for luxury products, the paper said.
Milan Station, which sells new and second hand-hand designer hangbags from brands such as Hermes, Chanel, Louis Vuitton and Gucci, estimated the size of the Hong Kong designer handbag market at HK$9.6 billion in 2009 of which 45 percent of sales were from mainlanders, the paper said citing a pre-listing prospectus.
The firm aims for a flotation by the end of this month, the paper added. It gave no further listing details.
Tapping the growing appetite for luxury products in China, many luxury brands including Italian fashion house Prada, upscale handbag and accessories maker Coach Inc , and British luxury shoemaker Jimmy Choo, are eyeing a listing in Hong Kong.
Reporting by Donny Kwok; Editing by xxx