"American Lycra Group" Seeks IPO Parent Company Shandong Ruyi Backing.

Informed sources revealed that Shandong Ruyi investment holding group has begun to prepare IPO (initial public offering) for its newly established The Lycra Co..

People familiar with the matter said that Ruyi group is working with Goldman Sachs to study the feasibility of the deal, which is estimated to raise US $500 million.

The plan will begin early this year to sell the stock of the Lycra group and consider listing the United States as a listing point.

At the end of January this year, Ruyi Group acquired the clothing and advanced fabrics business of Koch, a polymer and fiber supplier of the United States, from the US Industries Invista, including COOLMAX, fiber and THERMOLITE fiber thermal insulation materials.

After the completion of the paction, Ruyi group set up a new company, Lycra group, which mainly produces elastic fabrics for jeans and yoga wear.

Due to regulatory constraints, the $2 billion cross-border acquisition took 15 months from announcement to completion.

Through this acquisition, Ruyi group has added about 3000 employees.

Kelvin Ho, chief strategy officer of Ruyi group, said in February this year that it plans to bring its subsidiary Lycra group to market in three years.

According to people familiar with the matter, the IPO plan is still in its early stage, and the details of financing scale and time to market may change.

After the Ruyi group, another bank may be invited to participate in the paction.

A representative of Ruyi group confirmed that the company was considering listing the American Lycra group, but has not yet identified the venue, scale of financing and financial advisor.

Goldman Sachs declined to comment.

Ruyi group has acquired a large number of well-known fashion and luxury brands overseas in recent years, including Swiss luxury brand Bally, British windbreaker brand Aquascutum and Sandro, Maje, Claudie Pierlot and other women's fashion brands such as France fashion group SMCP, among which SMCP was listed on the pan European stock exchange in Paris in October 20th.

Qiu Yafu, chairman of Ruyi group, said in an interview last November that the group is currently concentrating on integrating existing brands and will slow down the pace of mergers and acquisitions in the short and medium term.

Bloomberg data show that over the past year, the global consumer goods enterprises have completed a US $48 billion 500 million IPO.