Blackstone-backed Simone Acc readies $340 mn IPO on Kospi for Nov

Simone Acc. Collection Chairman Park Eun-kwan [Photo provided by Simone Acc. Collection]

South Korea’s top original design manufacturer (ODM) of high-end hand bags Simone Acc. Collection Ltd. backed by U.S. private equity firm Blackstone assured sales will normalize from a pandemic hit this year and increase by 10 percent from next year as it solicits investment to its initial public offering of 8.37 million shares at a desired band of 39,200-47,900 won to raise maximum 400.9 billion won ($339.51 million).

According to Simone Acc’s IPO prospectus filed with the Financial Services Commission on Monday, the company will offer 8.37 million shares with new shares accounting for 20 percent or 1,675,000 issues and existing 6,695,000 shares at a desired price band between 39,200 won and 47,900 won.

At the top end, the IPO would raise up to 400.9 billion won and put the company’s market cap on the Kospi at 1.6 trillion won.

A two-day pricing session ends on Tuesday, followed by public subscriptions on Oct.25-26 for listing on Nov .4.

Samsung Securities and Mirae Asset Securities are acting as lead IPO managers and Korea Investment & Securities is co-underwriter.

Established in 1987, Simone is the first ODM player in Asia to design handbags for global high-end brands. Boasting a strong client portfolio of affordable high-end brands like Coach, Michael Kors, and Tory Burch, the company commands the highest 10 percent share in the global market and a 30 percent share in North America. Its operating margin hovers above 10 percent, higher than the average of manufacturing industry. In 2015, global PEF Blackstone invested $300 million to acquire a 30% stake in Simone.

Simone delivered an operating profit of 43.4 billion won on sales of 333.5 billion won in the first half of this year, bouncing back from a temporary setback in the pandemic-stricken year of 2020 when its sales plunged nearly 40 percent on year.

“We expect our sales this year to reach 70-80 percent of the pre-pandemic levels and 100 percent next year, and aim to deliver a sales growth rate of 10 percent afterwards,” said Simone Chairman Park Eun-kwan.

The company said it will use 33 billion won of the IPO proceeds to expand its manufacturing plant in Southeast Asia.

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