Tainan Enterprise (Cayman) Co., Ltd., a China-based garment designer and producer, has filed an application with the Taiwan Stock Exchange for a primary listing, the exchange said yesterday. The exchange said the firm's parent company is Taiwan-based Tainan Enterprises Co. Ltd., which has been listed on the local main board since 2000.

The Cayman Islands registered entity, capitalized at NT$573 million (US$18.83 million), operates a fashion wear design and production base in Shanghai, targeting mid- and up-scale customers in China.

The company has a distribution network with more than 800 outlets in China, which accounts for almost 100 percent of the company's annual sales.

According to a company prospectus, it is planning to issue 7.82 million new shares for the listing, with a price tentatively set at NT$52, to raise about NT$406 million.

The prospectus said the money raised will be used as working capital to repay bank loans and expand its China operations.

The document said China is a fast-growing market for fashion wear, with garment retail sales in 2009 totaling 326.4 billion Chinese yuan (NT$1.49 trillion). The figure is expected to exceed 630 billion Chinese yuan in 2010.

In 2009, Tainan Enterprise (Cayman) posted NT$168 million in net profit, with earnings per share (EPS) at NT$2.95, according to the Taiwan Stock Exchange. In the first three quarters of this year, its net profit reached NT$46.01 million, with EPS at NT$0.8, the exchange said.

Source: The China Post