Chinese shoe manufacturer to debut on Warsaw bourse

photo - wikipedia

The company's IPO is under way and the stock exchange debut is scheduled to take place on 6 November on both markets.

Investors may subscribe for the shares on 17-23 October. The company is issuing 1.2 million shares for the purpose of the IPO.

“I know that this is a strong stock exchange, a strong market in the region,” Weijie Lin, director general of Fenghua SoleTech AG, told news agency Newseria when asked about the Warsaw Stock Exchange.

Proceeds for the share issue will be spent on expanding Feghua SoleTech's factory in the Chinese city of Jinjiang. The production plant now employs some 1,800 people and produces 48 million shoe soles annually.

“We would like to spend the proceeds primarily on extending our production area and increasing production capacity, because we have good perspectives and we want to grow,” Weijie Lin said.

By extending the factory from the present 1,600 sqm to 3,000 sqm and installing new machinery, the company wants to increase its production capacity to 80 million shoe sole each year.

The IPO of Feghua SoleTech is managed by brokerage house DF Capital. The broker recently said it would introduce yet another Chinese firm, this time from the food processing sector, to the Warsaw bourse this year.

There are currently two Chinese companies listed on the WSE, Peixin an JJ Auto. (kw)