DGAP-News

Fenghua SoleTech AG plans IPO at the Frankfurt and Warsaw Stock Exchange

DGAP-News: Fenghua SoleTech AG / Key word(s): IPO
Fenghua SoleTech AG plans IPO at the Frankfurt and Warsaw Stock
Exchange

15.10.2014 / 10:10

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Fenghua SoleTech AG plans IPO at the Frankfurt and Warsaw Stock Exchange

* Second largest sports shoe sole manufacturer in China
* Offering volume of up to 1,200,000 shares at a price range between 10.00
and 12.00 Euros
* Offer period planned from October 17, 2014 until October 23, 2014
* Listing expected on November 6, 2014

Frankfurt am Main, October 15, 2014 - Fenghua SoleTech AG (together with
its subsidiaries hereinafter "Fenghua"), the second largest sports shoe
sole manufacturer in the Chinese market, announces its IPO on the Frankfurt
and Warsaw Stock Exchange. In the context of the IPO, Fenghua is publicly
offering up to 1,200,000 new no par value ordinary bearer shares in Germany
and Poland. The price range for the shares is expected to be between 10.00
and 12.00 Euros. The offer volume would lead to gross proceeds of up to
14.4 million Euros.

Fenghua plans to use the net proceeds mainly to increase the capacity of
the production facilities. The company intends to further expand usable
space and to invest in new machinery for the production of shoe soles. The
expansion would nearly double the total floor space of the factory from
currently 1,600 m2 to 3,000 m2.

Technology-driven Chinese producer of shoe soles with national and
international client base
At its production facilities located in Jinjiang County, Fujian Province,
one of the leading shoe industry hubs in China, Fenghua produces more than
40 million pairs of shoe soles per year. As one-stop-supplier, Fenghua's
value chain also covers the processing of raw materials and the production
of components that are required for the different types of shoe soles.

Disposing of a dynamic research and development team, Fenghua is able to
offer an own range of products to be manufactured as original design
manufacturing (ODM), while many of Fenghua's competitors only produce soles
under their customers design prerequisites as original equipment
manufacturing (OEM).

The soles manufactured by Fenghua are designed for performance sports shoes
as well as for leisure and casual sports-inspired shoes targeting mid to
high end shoe producers in China and international brands.

Excellent financial performance
Thanks to its strong business model, its long-term industry experience and
its favorable market position as a one-stop-supplier for shoe soles,