3i-backed Chinese department store plans IPO

The UK-based private equity firm will reportedly sell its stake in PCD Stores when it lists on the Hong Kong Stock Exchange. The company plans to raise up to $387m.

Chinese department store operator PCD Stores, in which 3i has a stake of 9.54 percent, has filed a draft document with the Hong Kong Stock Exchange, indicating its plans for an initial public offering (IPO).

PCD Stores aims to raise up to HK$3 billion ($387 million; €256 million) by offering 1.5 billion shares at a price range of HK$1.65 to HK$2 per share, according to media reports. The company is expected to set its listing share price on 9 December and begin trading on 15 December.

3i invested an undisclosed sum in PCD Stores in 2005. Sources have told Bloomberg the private equity firm is selling its shares in the IPO.

After its lists, PCD Stores intends to expand its network of stores and enter the outlet mall business, it said in its draft document. The company is focused on luxury and high-end fashion and accessories. It owns nine stores and provides management consultancy services to seven department stores and one outlet mall across cities including Beijing, Changchun, Guiyang, Liupanshui, Nanning, Qingdao, Taiyuan, Xi'an, Xiamen and Zunyi.

PCD Stores booked a profit of RMB124.1 million ($18 million; €12 million) for the six months ended 30 June 2009. As of 30 September 2009, its debt stands at about RMB1.3 billion.