Chlitina Holding Ltd (麗豐), which provides brandname cosmetics products to China, is set to trade its shares on the Taiwan Stock Exchange from Nov. 27 with an initial public offering price of NT$180 per share.
By issuing 8.91 million new shares, the company aims to raise about NT$1.6 billion (US$54.29 million) to build a research center and laboratory in Hsinchu, Chlitina chairperson Joanna Chen (陳碧華) told a media briefing on Monday last week.
The NT$400 million project will start next year and be completed by the end of 2016, Chen said.
Chlitina president and CEO Richard Yu (余敬倫) said the company wants to take advantage of the growing cosmetics market in China.
Sales in China accounted for 98.23 percent of the company’s revenue last year, according to Chlitina.
“Going to a beauty salon is a new fad in China because clients can receive customized service and professional advice about what products are most suitable for them,” Yu said.
Chlitina has 3,300 franchise beauty shops in China. The company plans to expand the number to 5,000 in three to five years, with most of the operations to be launched in second and third-tier cities, Yu said.
Citing market research company Euromonitor International Inc, Chlitina said the cosmetics market in China is set to post a compound annual growth rate of 8.3 percent to 300.58 billion yuan (US$49.35 billion) in 2017 from 202.09 billion yuan last year.
From January through last month, Chlitina posted revenue of NT$2.13 billion, up 7.85 percent from NT$1.98 billion a year ago, according to the company’s filing to the stock exchange.
Yu said the company’s sales growth this year has been affected by the economic slowdown in China and will be less than the 25 percent annual growth seen last year and in 2011.
During the first half of this year, the company’s net profit was NT$309 million, or NT$4.62 per share, up 22.9 percent from NT$251 million, or NT$3.76 per share, a year ago.
Fubon Securities Co (富邦證券) said in a report on Oct. 31 that Chlitina could see revenue increase 15.4 percent this year to NT$2.78 billion from NT$2.41 billion last year and profit grow 20.7 percent to NT$712 million from NT$590 million.
Chlitina is a brand created in 1989 by local direct selling company Kelti International Co (克緹國際), which is chaired by Chen Wu-kang (陳武剛), the father of Joanna Chen.