Metersbonwe also went IPO "Unusual Road" intends to publicly issue 70 million shares

As the expansion of the marketing network was blocked, Metersbonwe, who had not taken the unusual route, also chose the old road of peers. Yesterday, Shanghai Metersbonwe Fashion Co., Ltd. (002269) publicly issued a prospectus to start the IPO.

The company will conduct an initial inquiry from August 5th to November 11th. The offline subscription time will be August 13th and 14th, and the online subscription time will be August 14th.

The prospectus shows that Metersbonwe has a registered capital of 600 million yuan, pre-release net assets of 1.34 yuan per share, plans to issue 70 million A shares and plans to raise 1.8 billion yuan for marketing network construction and improvement of information systems. The total investment of these two projects is about 2.822 billion yuan, of which 1.8 billion is from the funds raised by this IPO, and the rest is supplemented by self-owned funds. In terms of marketing network construction, Metersbonwe plans to build 68 new stores in one year, including 31 directly-operated stores and 37 franchised stores.

Metersbonwe originated in Wenzhou, and took the lead in adopting "virtual management" mode in the domestic garment industry, taking the road of brand chain management and having more than 2,000 specialty stores. At the end of 2005, the company's headquarters was relocated to Shanghai; in 2006, the total system sales were 3 billion yuan; in 2007, Shanghai Metersbonwe Co., Ltd. was changed to a joint stock company.

Wenshang characteristics IPO

As a company with Wenzhou’s capital background, Metersbonwe’s IPO is also close to Wenzhou’s traditional investment habits and pinches control in its own hands—the IPO issuance of common stock only accounts for 10.45% of the company’s total issued capital. Some analysts believe that this shows the entrepreneur's confidence in the company, but also foreshadowed the follow-up financing.

Before the issuance, Huafu Investment Company was a controlling shareholder of Metersbonwe, holding 90% of the shares; Hu Jiajia, a natural person, held 10% of the shares. The legal representative of Huafu Investment Company is the chairman of Metersbonwe, Zhou Chengjian and Hu Jiajia, who are the daughters of Zhou Chengjian.

Subsidiary profitability wait and see

Although the IPO will ease financial pressure, the operations of Metersbonwe’s subsidiaries still need to wait and see. Its prospectus shows that Metersbonwe's subsidiaries acquired in recent years are mostly in a state of loss. In 2005, all of its subsidiaries suffered losses with an accumulated loss of 40,439,200 yuan. In 2006, Shenyang Smith Barney and Beijing Smith Barney began to make profits. The company still suffered losses with an accumulated loss of 40,515,400 yuan. In 2007, Nanjing Meibang, a subsidiary acquired, also lost 2.6629 million yuan.

In this regard, Metersbonwe explained in the prospectus that “some of the subsidiary companies have been operating for a short period of time, and the direct-owned stores that the subsidiary companies are responsible for have undertaken the task of cleaning up inventory.” and stated that with the increase in brand awareness, franchisees With the implementation of the order-meeting system, the inventory will be relatively low, and the role of directly-operated stores in liquidating inventory will gradually be diluted, which will increase the gross profit margin of subsidiaries. In 2007, the gross profit margin of subsidiaries has risen to 27%. At the same time, the "flat effect" of the directly operated stores will also increase. Sohu Securities stated that the information content of this channel has been quoted from cooperative media and cooperative agencies. It does not represent Sohu's own opinions and positions. Investors are advised to exercise cautious judgment on this information and to enter the market at their own risk.