Anna Jiwon Park has been covering the politics at The Korea Times since the summer of 2024, when she joined the press pool for the Office of the President in Korea. Prior to that, she spent about five years reporting extensively on financial markets, regulatory authorities and the financial industry. She joined The Korea Times in 2019 after spending eight years as a broadcast journalist at Arirang TV, Korea’s leading global broadcaster, covering politics, defense and culture.
Blackstone-backed global handbag maker to go public next month
The headquarters of Simone Accessories Collection, located in Uiwang, Gyeonggi Province / Courtesy of Simone Accessories Collection
By Anna J. Park
By Anna J. Park
Simone Accessories Collection, a luxury handbag maker that mainly sells products on an ODM (original design manufacturer) basis to global fashion brands such as Coach, Michael Kors, and Tory Burch, will make its debut on the KOSPI next month.
During an online press conference about its IPO held Monday, the company highlighted its strength as a full-platform service, including providing designs, manufacturing and quality assurance. The firm also noted how it receives simultaneous orders from various competing global fashion brands, which indicates the competitiveness of its products.
The company accounts for about 10 percent of the global handbag and wallet ODM market, the world's top share in the industry. More than 80 percent of the firm's revenue comes from major customers, including Tapestry (Coach, Kate Spade), Capri Holdings (Michael Kors) and Tory Burch. The firm also receives orders from Marc Jacobs and DKNY.
“Based on the world's top-quality handbag-making expertise and know-how, Simone Accessories aims to continue its growth as a top global luxury handbag maker in the ODM market,” the firm's founder and CEO, Park Eun-kwan, said during a press conference, adding that he plans to diversify products and customers, aiming to continue his firm's global expansion.
The company logged revenue of 334 billion won ($282 million) for the first half of the year with an operating profit of 43 billion won, up 9.1 percent and 67 percent from the same period last year. The company expects to achieve annual revenue of 1 trillion won by the end of 2021.
Altogether, 8.37 million shares will be offered in the listing with the aim of raising 328 billion won. The company's market cap after the IPO is expected to range between 1.3 trillion won and 1.6 trillion won, depending on the closing price on the day of the listing, scheduled for Nov. 4.
Prior to its IPO, a two-day subscription process for institutional investors will be held Oct. 18 and 19, followed by a two-day subscription period for retail investors Oct. 25 and 26.
Mirae Asset Securities, Samsung Securities and Korea Investment & Securities are the IPO underwriters.
Established in the late 1980s, the company was one of the first major ODM players in Asia to receive orders from global luxury brands. The company later spun off from its parent company, Simone, in 2015 to focus on the ODM business.
In the same year, global private equity firm Blackstone acquired a 30 percent stake in the firm for 300 billion won, when its corporate value was 1 trillion won. The global assets firm is expected to continue its ownership after the IPO, as it expects continual growth in the near future.