Fila Korea Ltd. launched an initial public offering on Tuesday and recorded the second-best debut on South Korea’s Kospi Index this year.
Fila Korea, Korea’s largest sportswear company, offered 3.25 million shares at an initial offering price of 35,000 won, or $30.53 at current exchange. The stock nearly doubled to 68,700 won, or $59.92, by close of trading on Tuesday, raising a total of about 113.8 billion won, or $99.3 million. Meanwhile, the benchmark index fell 0.3 percent.
Fila Korea’s IPO comes less than four years after it took over the global brand from Sports Brands International, a holding company owned by U.S. hedge fund Cerberus Capital Management, for $400 million in January 2007.
The company will use proceeds from the stock sale to pay down remaining debt from the acquisition, as well as to “promote further marketing activities in the U.S., where substantial progress has already been made over the last three years to increase Fila’s visibility and market share,” said a company statement.
Fila also is expected to strengthen its shoe business and launch new brands in a bid to boost its market share in Korea, according to a research note by Chung Yon Woo, an analyst at Seoul-based Daishin Securities Co.
The offering is being underwritten by Samsung Securities Co.