Lady House "Lost To Oneself" &Nbsp; Clothing Enterprise IPO Difficulty Increases

In the prospectus, the self appointed "Ladies' favorite ladies' brand house", after experiencing a wave of doubt, declared IPO for the first time.

The notice issued by the SFC on November 2nd evening showed that the first application of Shenzhen ladies house fashion company was not approved, and two other applications from the other three companies that were on the same day with the ladies house were also denied. IPO

Analysts pointed out that the IPO of the ladies' house is not only related to its own serious flaws, but also because of the excessive packaging of the draft prospectus, but also because "management has just changed hands, intending to control the rhythm of IPO".

"Excessive packaging of prospectus"

The ladies' house, which has been waiting for a large number of enterprises to stand out, relies entirely on the "magic pen" in its prospectus.

This prospectus shows that the popularity of Lady house is even more than that of international famous brands Dior and LV, which sparked widespread market doubt and consumer ridicule.

Besides, in the prospectus of lady's house, it also exposes the risk of production dependent processing and the high proportion of inventory surplus. This also adds to the hidden danger of IPO.

The SFC's announcement on the evening of November 2nd showed that the first application of Shenzhen ladies house fashion company was not approved, and the first application of the Puyang forest chemical Limited by Share Ltd and Anhui Guang Xin agro chemical Limited by Share Ltd on the same day as the ladies' house were not approved.

The rate of recent trial issuance is only around 50%, the most stringent record this year.

"There is a problem of excessive packaging in the draft prospectus of the ladies' house," Liu Zhenxian, a senior private researcher, told the Beijing Morning Post author. It may also be that management has deliberately laid the groundwork for IPO, reducing market pressure by reducing the financing of other stocks.

IPO frequency of garment enterprises

Since this year, the overall pass rate of IPO of garment enterprises is very low.

In addition to the ladies' house, this year, the IPO of clothing companies such as Shanghai, Zhuhai, Fujian and so on are not.

Analysts pointed out that the domestic A shares and H shares have higher requirements for clothing enterprises, which makes the IPO of garment enterprises more difficult. "The entry threshold of the clothing and home textile industry is low, and the homogenization competition is fierce. The clothing processing and export companies have the characteristics of low added value and weak bargaining power, which are the main reasons for the IPO enterprises to lose their jobs."

In Liu Zhenxian's view, although the scale, profit margins, business risks, cost fluctuations and other issues have been a stumbling block for the IPO of garment enterprises, but this is the main reason for the loss of the ladies' house. "The most important thing is that there are some problems in the company itself, which are not closely related to the clothing industry. After all, the clothing industry is not a policy restricting development industry."