| Novel Denim Holdings Ltd. | |||
| Ticker: | NVLDF | 1/F, Novel Industrial Building 850-870 Lai Chi Kok Road | |
| Exchange: | NASDAQ-National Market | Kowloon, HKONG | |
| Industry: | Manufacturing (SIC Code 2326) | ||
| Type of Shares: | Ordinary Shares | Filing Date: | 7/2/97 | |
| U.S. Shares: | 3,500,000 | Offer Date: | 7/23/97 | |
| Non-U.S. Shares: | 750,000 | Filing Range: | $15.00 - $17.00 | |
| Primary Shares: | 937,500 | Offer Price: | $18.00 | |
| Secondary Shares: | 3,312,500 | Gross Spread: | $1.26 | |
| Offering Amount: | $68,000,000 | Selling: | $0.76 | |
| Expenses: | $1,550,000 | Reallowance: | $0.10 | |
| Shares Out After: | 9,437,500 |
| Manager | Tier | Phone |
| Morgan Stanley Dean Witter Discover & Co. | Lead Manager | (212) 761-5900 |
| Montgomery Securities | Co-manager | (415) 627-2100 |
| Smith Barney Inc. | Co-manager | (212) 723-7300 |
| Issuer's Law Firm: | Simpson, Thacher & Bartlett |
| Bank's Law Firm: | Davis, Polk & Wardwell |
Dollar amounts in U.S. millions except for per share data | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 3/31/97 | 3/31/97 | ||||
| Revenue: | $83.19 | Assets: | $66.70 | ||
| Net Income: | $11.08 | Curr Assets: | $30.62 | ||
| EPS: | $1.30 | Liabilities: | $32.73 | ||
| Prior EPS: | $0.98 | Curr Liabilities: | $25.33 | ||
| Cash Flow/Oper: | $24.30 | Equity: | $33.97 | ||
| Cash Flow/Fin: | $17.97 | Cash: | $2.68 | ||
| Cash Flow/Inv: | -$19.89 | Working Cap: | $5.29 | ||
| Business Description |
| The company is a leading, low cost, vertically-integrated supplier of both high-quality denim garments and fabric primarily to the European Community. Silas Chou, Chairman of the Board, and K.C. Chao, Chief Executive Officer and President, founded the company in 1988 as a denim fabric manufacturer. The company became a vertically-integrated producer of basic and value-added denim garments to complement its fabric production in 1990 with the addition of sewing and finishing facilities. The company offers a wide range of high-quality basic and value-added denim garments and denim fabric in accordance with customer specifications. The company produces more than 100 types of different garments, including jeans, shirts, skirts an djackets in a variety of styles, colors and finishes, such as overdyed, stonewasheda dn sandblasted. The company also produces approximately 50 different kinds of denim fabric, including lighter-weight fabrics, fabrics made with alternative weaves and specialty colors and finishes. The company's customers include majormanufacturers, retailers and licensees that market under propreitary labels and trademarks such as DYNAM, The Gap, Guess, Maverick, Nico, Pepe, Tommy Hilfiger and Wrangler. |
| Business Plan |
| The company intends to leverage its competitive position and take advantage of continuing demand for denim in the EC through the following operating strategies: (I) Flexible, Vertically-Integrated Manufacturing Facilities, (ii) Competitive Pricing and Low-Cost Operations, (iii) Emphasis on High Quality Products, (iv) Management Team to Support Growth and (v) Expand Sales to New Customers in Existing and New Markets. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to repay long term debt, to lease an additional denim garment manufacturing plant in Madagascar. |