Établissements Sogal’s Chinese Subsidiary Floated on the Stock Market
See the other news articles

Établissements Sogal’s Chinese Subsidiary Floated on the Stock Market

To maintain its quick growth on the Chinese market, Ningji, Établissements Sogal's subsidiary, was successfully floated on the Shenzhen Stock Exchange on April 12, 2011 for a stock price of 86 Yuan (RMB). 25.2 % of Ningji's capital is listed. This floatation could be completed thanks to a capital increase of 1,161 million Yuan (RMB), i.e. 123 million euros. The total post-capital increase valuation of the company Ningji reaches 487 million euros.

Établissements Sogal have been quickly expanding throughout China for 10 years. Sogal has become the 6th foreign brand in the country in terms of number of outlets. The Group is acclaimed for the quality of its production and its know-how “à la française”. 350 million euros of products (public price equivalent) were sold in the more than 700 Sogal shops.

Today, the network keeps growing very rapidly since a new Sogal shop opens each day in China. Our aim is to reach 1,000 outlets within the next two years and to cover the whole Chinese territory.

This development means Établissements Sogal can provide their subsidiary with the means necessary to finance its investments by raising funds from the domestic financial market without damaging its own cash.

Now that this operation has been conducted, the company SOHA, an operating company based in Hong Kong, is 51 % owned by Établissements Sogal and aims to triple the value of its subsidiary.

Based on its latest quotation, Ningji's value is estimated at 439 million euros and SOHA's value at 82 million euros, which means the value of Établissements Sogal's share is estimated at 42 million euros.

Follow the stock price in the Shenzhen Stock Market here