Lanvin Group, the luxury fashion company owned by Chinese conglomerate Fosun International, said on Wednesday it plans to list in New York by merging with a special purpose acquisition company (SPAC).
It aims to raise up to $544 million to fund its global expansion ambitions.
Lanvin Group, which manages iconic brands such as Lanvin, Sergio Rossi, Wolford, St John Knits, and Caruso, has agreed to combine with a US-listed ‘blank cheque company’ affiliated to Primavera Capital Group.
Primavera is an investment firm founded by former Goldman Sachs China chairman Fred Hu.
“We plan to accelerate the growth of our portfolio via both organic development and disciplined acquisitions,” Joann Cheng, Lanvin’s chair and chief executive said in a statement.
The announcement came less than two weeks after US regulators named five New York-listed Chinese companies that face delisting risk.
Lanvin’s move shows that some Chinese companies are undeterred by the long-running auditing dispute between Beijing and Washington.
The US listing plan by Shanghai-based Lanvin may also face scrutiny by Chinese regulators, who are tightening supervision over offshore share sales by Chinese firms, including those through SPACs.
SPACs are shell firms that raise money from institutional and retail investors via market listings, and put it in a trust for the purpose of merging with a private company and taking it public.
Wall Street’s frenzied blank-cheque deals have slowed in the past year but some Chinese companies still see it as a short cut to accessing US capital markets.
Lanvin Group was formerly known as Fosun Fashion Group before it adopted the name of the French luxury label.
The expected fundraising includes up to $414 million of cash in the trust account, and fully committed subscriptions and forward purchase agreements worth $130 million from investors including Fosun International, Itochu and Stella International.
Max Chen, partner at Primavera, said: “Lanvin Group and Primavera share the same vision of nurturing and reinvigorating world-class luxury brands.”
• Reuters, with additional editing by George Russell