Chinese sportswear retailers eye $400 mln IPO-report

HONG KONG, May 26 - Chinese sportswear retailers Fujian Peak Group and 361 are racing to tap the Hong Kong IPO market in the third quarter, raising a combined US$400 million, the South China Morning Post reported on Tuesday, citing sources.

Fujian Peak, which has endorsed Houston Rockets star Shane Battier to promote its shoes in a US$4 million deal, is expected to raise at least US$200 million in an initial public offering between August and September. It has hired Credit Suisse to manage the deal, sources said.

Its rival 361 has hired Merrill Lynch to manage the deal and is expected to raise US$200 million in an IPO targetted for July, sources added.

The two firms manufacture and sell their own branded sports goods, and each operate 4,000 retail outlets on the mainland, the newspaper said.

The IPO market, which has been dormant for months amid the global financial crisis, has seen increased activity over the last few weeks as stock prices have surged. (US$1=HK$7.8)