China menswear designer Lilang eyes $100 mln HK IPO-report

HONG KONG, July 6 - Chinese menswear designer Lilang is planning to raise about US$100 million in an initial public offering of shares in Hong Kong, the South China Morning Post reported on Monday.

The company hired Merrill Lynch to manage the deal, which was scheduled to be launched in the fourth quarter, and a successful deal would value the company at US$400 million, the newspaper said without identifying a source. The company, which sells smart-casual clothing aimed at middle-class males, was the first mainland menswear company to show a collection at Milan Fashion Week in 2007, the newspaper added.

Lilang sells its products through a distribution network across 31 provinces in China and plans to open three to five flagship stores in major Chinese cities, the company said on its website http://www.lilanz.com/about.php

Activity in the Hong Kong IPO market has picked up in recent months as the stock market rallied with listing hopefuls reviving plans that had been put on hold last year amid the financial crisis. (US$1=HK$7.75)