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Naibu Global Intl Co (NBU)

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Thursday 05 April, 2012

Naibu Global Intl Co

Admission to AIM - First Day of Dealings

RNS Number : 8932A
Naibu Global International Co PLC
05 April 2012


Naibu Global International Company Plc


("Naibu", "the Company" or "the Group")


Admission to AIM - First Day of Dealings


Naibu, the proprietary brand name of Naibu Global International Company Plc, designs, manufactures and supplies Naibu branded sports shoes, and designs and supplies Naibu branded clothing and accessories in the People's Republic of China, is pleased to announce the admission today of the Company's no par value shares to trading on AIM, a market operated by the London Stock Exchange ("Admission") and the commencement of dealings under ISIN: JE00B648L531, TIDM: NBU.




·    Daniel Stewart, the Company's nominated adviser and broker, has placed 4,838,716 new ordinary no par value shares ("Shares") on behalf of the Company raising approximately £6m before expenses ("Placing"). The new Shares were placed at a price of 124 pence per Share, implying a market capitalisation of Naibu on Admission of £68m.


·    The Group intends to use the net proceeds of the Placing, alongside cash generated from the business, to implement its strategy to expand its operations by building a new shoe production factory for the Group in central or western China. This factory will increase the Group's current shoe production capacity. The Group has also entered into an agreement to purchase its existing factory in Jinjiang. The Directors believe this will improve Group profit margins, delivery time and quality control.


·    Experienced Board with strong industry and business expertise, and strong Independent Non-Executive representation.


·    Naibu is a recognised brand in the Chinese sportswear market. In a recent study commissioned by the Group and written and published by Frost & Sullivan on 8 December 2011, the Company was ranked as the tenth largest Chinese sportswear brand.


·     The Group has an estimated market share of 3.6% of the local brands in the student sportswear market and an overall market share of 1.4% of the local sportswear market in China.


Mr Huoyan Lin, Executive Chairman, commented:


"The successful admission to AIM represents an important platform for the Company and the Board believes that we can build substantially from our current position with the aim of growing the business further. We would like to thank our existing supporters and we are delighted to welcome our new investors".




Mr Huoyan Lin, Executive Chairman


Mr Huoyan Lin is the Executive Chairman and co-founder of Naibu, which he established 6 years ago. He has extensive experience in almost every process in the footwear sector, having spent over 20 years' in the shoe and sportswear industry.  During this time Mr Huoyan Lin has gained recognition from distributors and contacts within the industry.


Mr Chi Keung (Kenny) Law, Chief Financial Officer


Mr Law was appointed Chief Financial Officer of the Group in October 2011.   Mr Law has over 30 years' of experience in finance and administration in various industries across China, Hong Kong and Singapore including auditing, clothing and oil and gas. Mr Law is a qualified Accountant and is a member of CPA Australia.   He holds a Masters degree in Business Administration from the University of Southern Queensland and Master of Business in Professional Accounting from Victoria University of Technology, both in Australia.


Mr Congdeng Lin, Vice President of Production


Mr Congdeng Lin is the Vice President of Production for the Group. He joined the Group in 2005 and has over 20 years' industrial management experience specifically in the clothing and shoe industry. From 2002 until 2003 he was the Production Manager of Quanzhou Naibu Sportswear Company Limited and was the Purchasing and Production Manager from 2003 until 2005.


Mr Giles Elliott, Non-Executive Deputy Chairman


Mr Elliott is an investment banker who has extensive experience with Asian companies, having worked with Schroders Asia Limited in Hong Kong for several years. He is a qualified Chartered Accountant with over 30 years' investment banking experience.  He is a former group chief executive of Bridgewell Group Limited, a specialised mid-market investment bank. He is also a former chairman and chief executive of ODL Group Limited and is currently a non-executive of the major international publishing company, Macmillan Limited.


Mr David Thomas, Non-Executive Director


Mr Thomas is a UK qualified solicitor with over 20 years' of experience practising corporate finance law before moving into investment banking. Since 2002, he has been working independently on various projects involving Hong Kong, China, Malaysia and Singapore including working with Chinese enterprises wishing to raise capital overseas. Currently, he is involved with several companies which have Asian-based businesses and which are either admitted or intending to be admitted to AIM.


Mr Stephen Cheung, Non-Executive Director


Mr. Cheung is an investment banker with nearly fifteen years experience in investment banking, including two years as a member of the Executive of the UK Takeover Panel. He was most recently Head of Financial Sponsors, Asia at UBS in Hong Kong where he worked with Asian and Chinese businesses to raise capital in both public and private markets. Prior to that, he was at Bridgewell Group where he assisted a number of businesses list on AIM and at Merrill Lynch, where he was a member of the European Mergers & Acquisitions Group, both in London. He is a UK qualified non-practising Barrister at Law and a Chartered Accountant.




The Directors believe the Naibu brand is a key driver to the success of the Company. Naibu's distinctive orange ring-shaped logo is inspired by "nuclear fusion" to symbolise energy and is highly recognisable by its striking colour and design.


The Group designs, manufactures and supplies Naibu branded sports shoes, and designs and supplies Naibu branded clothing and accessories. Naibu products target the mass-market, focussing primarily on students and young adults aged between 12 and 35, offering them branded sports fashion at a reasonable price. During 2011 the Group had approximately 325 live product lines from which 56% of sales were generated from shoes and 41% from clothing, respectively while the balance comprised branded accessories. The Group sells its products to independent regional distributors who, at the end of September 2011, collectively operated 2,810 Naibu branded stores and sales outlets in 21 provinces and 3 municipalities across China.


The Group has a strong research and development ("R&D") team consisting of approximately 92 employees, which in the Directors' opinion, is vital to the success of the brand. The R&D department consists of three teams comprising design, product development and technology development. The overall design of the shoes and clothing is supervised by the Executive Chairman, Mr Huoyan Lin. The Group leases two factories comprising of eight production lines; producing approximately 6.15 million pairs of shoes per annum.


The Chinese sports shoe and apparel industry is a growing market, and it is the Directors' belief that the Chinese sports and clothing sector will continue to grow in the future owing to the continued expansion of China's retail market as a result of strong economic growth.  In order to take advantage of this growth, the Group's strategy is to capture retail growth within third and fourth tier cities, where international competition is limited and to focus on reducing the amount of outsourced manufacturing. This will reduce the Group's costs of production and improve the product quality and delivery time of Naibu branded products.


The Directors consider that Admission will assist in achieving the Group's strategy by enhancing the Group's profile and the Naibu brand.


A copy of the Admission Document is available on the Company's website -




Naibu Global International Company Plc

Mr Kenny Law, Chief Financial Officer

Tel: +86 591 8820 5517/ +86 150 5948 7576/ +65 91060910


Daniel Stewart & Company plc

(Nominated Adviser & Broker)

Paul Shackleton/Jamie Barklem/ Martin Lampshire

Tel: +44 (0) 207 776 6550


First City Tavistock

(Public Relations Adviser)

Allan Piper/ Lei Jiang Tel: +852 2854 2666

Simon Hudson/ Kelsey Traynor Tel: +44 (0) 20 7920 3170




This information is provided by RNS
The company news service from the London Stock Exchange

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