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Report: China's Topsports raises $1.01B in Hong Kong IPO

Chinese sportswear retailer Topsports International Holdings Ltd. raised $1.01 billion in an IPO on the Hong Kong bourse after pricing its shares at HK$8.50 apiece, Reuters reported, citing a term sheet.

The sportswear unit of Chinese footwear retailer Belle International Holdings Ltd. priced the stock toward the lower end of its marketing range of HK$8.30 to HK$10.10 apiece.

The Chinese distributor and retail partner of NIKE Inc. and Adidas AG will start trading Oct. 10.

The offering gives Topsports a market capitalization of about $6.74 billion, the term sheet reportedly showed. Bank of America Corp. and Morgan Stanley jointly sponsored the offering.

In 2017, a consortium led by Hillhouse Capital Management Ltd. and CDH Investments Management (Hong Kong) Ltd acquired and privatized Topsports parent Belle in a deal worth $6.8 billion, according to Reuters.

Topsports, which initially aimed to raise up to $1.2 billion, has an overallotment option to sell stock worth an extra $160 million depending on demand, the news outlet reported, citing people familiar with the development.

Topsports earlier said it would use 9.7% of the proceeds to invest in technology, nearly 27% to repay short-term bank loans and 45% to repay debt to Belle.

The IPO for the largest sportswear retailer in China by retail sales value comes amid ongoing protests in Hong Kong, causing Hang Seng Index to lose 4.3% since the June 9 march calling for the withdrawal for the bill, according to S&P Global Market Intelligence data.