Chinese sportswear maker Peak raises $232m ahead of potential IPO in 2022

Chinese athletic apparel producer Peak Sport Products Co has raked in nearly 1.5 billion yuan (about $232 million) in a strategic investment led by CR Capital Management, as the firm was reportedly planning an initial public offering (IPO) on a domestic stock exchange.

CR Capital Management, a wholly-owned subsidiary of Chinese state-owned conglomerate China Resources, led the deal through its 2-billion-yuan ($309.3 million) CR State-Regulated Xiamen Consumption Fund, according to a press release on Peak’s official WeChat account on Sunday.

CCB Trust, a unit of China Construction Bank, and its affiliate CCB Investment Funds Management, as well as other state-owned and privately run fund management companies participated in the round.

The development came after Bloomberg reported in January, citing sources, that Peak was in discussions about an IPO in the home market that could happen as soon as next year. The sources also mentioned the firm’s fundraising attempt, which was at a preliminary stage back then.

Its targeted listing location and potential IPO offering size remained unclear. Peak cannot be immediately reached for comment outside of business hours.

With the support of China Resources – whose wide range of businesses includes operating high-end shopping malls – Peak is expected to accelerate its expansion into first- and second-tier cities at home and abroad, targeting young-generation consumers.

The firm also plans to further optimise its equity structure, upgrade distribution channels, and increase investment in product R&D, said Peak CEO Xu Zhihua in the release.

“We will continue our focus on developing Peak’s key strengths that combine ‘brand building, sports technology, internationalisation, and fashion’ to lift technological innovations and R&D input under a user-centric strategy,” he said.

Peak, which already made its mark on the Tokyo Olympics by sponsoring New Zealand, Iceland, Belgium, and another four delegations, seeks to expand its cooperation with sports events and athletes after the new investment.

Started by founder Xu Jiangnan in 1988 and based in southeastern China’s Fujian province, Peak designs, manufactures and sells sportswear and footwear under its eponymous brand through both online and offline channels.

The firm was delisted from the Hong Kong stock exchange in a $311-million take-private deal in November 2016, after Xu saw what he described as “unsatisfactory” stock price performance since its listing in September 2009. It announced its intention to seek a domestic listing in a press release on its official WeChat account in February 2017.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.