The American shoemaker might be the next in line to launch on the trading floor, according to sources close to the matter. Skechers is reported be holding talks with financial advisers to consider different alternatives for its Asian subsidiary, including a potential initial public offering of shares (IPO).
Such possibility would consisting of a Hong Kong initial public offering of the business, thought to be able to raise about 1.5 billion dollars, added the same sources, quoted by Bloomberg.
Other options going through evaluation would include Skechers buying out its joint venture partners, one of the people said. It’s worth recalling that the retailer formed Skechers China with Luen Thai Enterprises in 2007. Its joint ventures in Asia also include units in South Korea and Southeast Asia, the company’s 2020 annual report shows.
Talking to Bloomberg News about the reported strategic evaluation, Skechers’ chief financial officer John Vandemore said that Skechers is constantly evaluating opportunities to increase shareholder value, including relative to its business in Asia, which the company believes is meaningfully undervalued by the market.
Skechers’ last available annual report shows that the company registered 4.6 billion dollars in sales. Per 2020 financial report, about 60 percent of those came from outside the United States, with China accounting for 924.5 million dollars (20 percent.)