Lanvin Group, the luxury fashion company owned by Chinese conglomerate Fosun International Ltd, said on Wednesday it plans to list in New York by merging with a special purpose acquisition company (SPAC) and aims to raise up to $544 million to fund its global expansion ambitions.
Lanvin Group, which manages iconic brands such as Lanvin, Sergio Rossi, Wolford, St. John Knits, and Caruso, has agreed to combine with a US-listed "blank cheque company" affiliated to Primavera Capital Group, an investment firm founded by former Goldman Sachs Greater China Chairman Fred Hu.
"We plan to accelerate the growth of our portfolio via both organic development and disciplined acquisitions," Joann Cheng, Chairman and CEO of Lanvin Group said in joint statement with Primavera Capital Acquisition Corporation (PCAC).
The announcement came less than two weeks after US regulators named five New York-listed Chinese companies that face delisting risks, and shows that some Chinese companies are undeterred by the long-running auditing dispute between Beijing and Washington.
The US listing plan by Shanghai-based Lanvin may also face scrutiny by Chinese regulators, who are tightening supervision over offshore share sales by Chinese firms, including those through SPACs.
SPACs are shell firms that raise money from institutional and retail investors via market listings, and put it in a trust for the purpose of merging with a private company and taking it public.
Wall Street's frenzied blank-check deals have slowed in the past year but some Chinese companies still see it as a short cut to accessing US capital markets.
Lanvin Group was formerly known as Fosun Fashion Group before it adopted the name of the French luxury label. It said it aims to raise a total of $544 million through the proposed combination with the Primavera SPAC.
That includes up to $414 million of cash in the trust account, and fully committed subscriptions and forward purchase agreements worth $130 million from investors including Fosun International, ITOCHU Corp and Stella International Ltd.
Max Chen, Partner of Primavera, said: "Lanvin Group and Primavera share the same vision of nurturing and reinvigorating world-class luxury brands."