A big leg up

China Daily (Canada) - - FRONT PAGE - By SHI JING in Shang­hai shi­jing@chi­nadaily.com.cn

Chi­nese foot mas­sage firm steps onto Aussie bourse

Tra­di­tional Chi­nese medicine is set to spread its wings to over­seas bourses, with a Chi­nese foot mas­sage com­pany look­ing to list its shares on the Syd­ney-based Aus­tralian Se­cu­ri­ties Ex­change.

Ac­cord­ing to an ASX an­nounce­ment, Tra­di­tional Ther­apy Clin­ics Ltd which owns the Hong Kong-reg­is­tered China Fuqiao Healthcare Co Ltd, will be listed on the Aus­tralian bourse onMon­day. China Fuqiao Healthcare, in turn, holds a 100 per­cent stake in Fuqiao (Chongqing) Hold­ings Co Ltd, which is the fastest-grow­ing foot ther­apy mas­sage brand in China.

TTC plans to raise A$15 mil­lion ($10.7 mil­lion) through an ini­tial public of­fer­ing of 30 mil­lion shares priced at A$0.5 each. The pro­ceeds will be used to “fund ex­pan­sion plans, brand pro­mo­tion, ex­pan­sion of fran­chisee net­work, and en­hanc­ing cor­po­rate gov­er­nance stan­dards”, the com­pany said in a state­ment.

An­drew Sned­don, a for­mer part­ner with Price­wa­ter­house­Coop­ers, a global con­sul­tancy firm, will be the new chair­man of TTC, rather than the founder Hu Zhi­rong. Sned­don has ex­ten­sive ex­pe­ri­ence in man­age­ment and in­vest­ment-re­lated ac­tiv­i­ties.

Fol­low­ing the public is­sue, Hwa­zon In­vest­ment Ltd will be­come the largest share­holder of TTC. The ac­tual con­troller of Hwa­zon is Hu Zhi­rong, the founder and pres­i­dent of TTC, who in­di­rectly holds 62.04 per­cent of Hwa­zon. Af­ter the float, Hu’s per­sonal wealth will rise to 300 mil­lion yuan.

Start­ing its oper­a­tions in South­west China’s Chongqing with foot ther­apy clin­ics in 1998, TTChad about 299 fran­chisees and 11 fully owned clin­ics in China as of April 30. It has been op­er­at­ing un­der the brand name Fuqiao, a trade­mark that was ap­proved by the State Ad­min­is­tra­tion Trade­mark Of­fice in 2002.

The com­pany has recorded a com­pound av­er­age an­nual growth rate of 69 per­cent in the past four years. Ac­cord­ing to­com­pany data, its sales rev­enue surged to A$30.86 mil­lion in 2014 from A$8.82 mil­lion in 2012. It is ex­pected that the com­pany’s sales rev­enue will reach A$41.66 mil­lion this year, with net profit com­ing in at A$15.85 mil­lion.

Aus­tralia was not TTC’s first choice, how­ever. China Fuqiao Healthcare was reg­is­tered in Hong Kong in 2011. A year later, Hu of TTC said that the com­pany was car­ry­ing out plans to go public in Hong Kong. As to the changed des­ti­na­tion, TTC would not dis­close any­thing for the time be­ing, say­ing that all the re­lated in­for­ma­tion will be re­leased once the com­pany is suc­cess­fully listed.

Aus­tralia has be­come one of the most pop­u­lar over­seas mar­kets for Chi­nese com­pa­nies in re­cent years. In Chongqing alone, there are two com­pa­nies that have gone public in Aus­tralia since 2003.

Ac­cord­ing to Gao Jianzhi, chair­man of Bei­jing-based Ea­gle In­vest­ment Group Ltd, Aus­tralia will gain in­creas­ing at­ten­tion from Chi­nese com­pa­nies with list­ing plans, es­pe­cially af­ter the free trade agree­ment be­tweenChi­naand Aus­tralia. Com­pa­nies spe­cial­iz­ing in al­ter­na­tive energy, ser­vices, con­sumer prod­ucts, high tech­nol­ogy and biotech­nol­ogy could con­sider Aus­tralia as a list­ing des­ti­na­tion.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.