Chinese outdoor clothing company Fraspens plans to float on London’s Aim in August in an effort to increase its domestic market share.
The company will use the £4m for a marketing campaign, to strengthen its design team and to develop its distributor network.
John Bautista, chief executive of Fraspens, said the flotation would allow the company to “capitalise on the high-growth Chinese outdoorwear market by exploiting demand in cities and rural areas of China” that have not historically been the target market of international and larger domestic brands.
According to Euromonitor International, including the international groups that operate in China such as North Face and Columbia, Fraspens is the seventh biggest outdoor wear brand in China with a market share of 6.8%.
The company, which designs and wholesales Fraspens branded outdoor clothing, footwear and related accessories such as backpacks, tents and water bottles, was established in 2007.
Fraspens, which reported turnover of about £39m and profits of £6.6m for the year to December 31, wholesales its branded products to 16 independent regional distributors in China. The group’s products are mainly made to order, with the distributors selling the products to end consumers via 580 Fraspens branded retail outlets in 14 provinces.