RedStar's plan to list in Shanghai on track

REDSTAR Furniture Group Co, a domestic furniture chain group, yesterday said its listing on the Shanghai Stock Exchange, which is scheduled to be completed in 2010, is on track.

The Shanghai-based retailer planned to start another round of securing private equity to help its listing, a spokesman for the firm said.

The retailer set up a joint venture in February this year with Warburg Pincus Funds, an international private equity firm which manages more than US$12 billion. Warburg Pincus paid US$1.5 billion for 20 percent of the joint venture while RedStar injected 70 percent of its assets into the firm, which will be the listed arm of the group.

Despite a dismal outlook next year, the retailer has raised its sales target to 39 billion yuan from 29 billion yuan. Sales for this year is forecast at 26.5 billion yuan.

The firm plans to run 80 outlets by 2010 and will tap markets overseas after it has opened 150 stores in China. RedStar, which owns about 50 stores nationwide, has sales of 15.3 billion yuan last year.

The huge domestic household products market has lured venture capital and private equity firms. The Carlyle Group invested US$27.5 million yuan in Shanghai Anxin Floor Ltd last year.