Lycra reportedly preparing for a $500 million IPO

Following its acquisition of Invista's Lycra division, Chinese group Shandong Ruyi is planning to launch a $500 million IPO for the business, now operating as The Lycra Company, within the next three years, according to a report from Bloomberg. 

The possibility of an IPO was already mentioned when Shandong Ruyi completed its acquisition of the business, formerly known as Invista's Apparel & Advanced Textiles division, from American chemical corporation Koch Industries. The Chinese group reportedly enlisted Goldman Sachs to look into the different stock market options available to the textile business, which, according to sources, changed hands for $2 billion. 

Shandong Ruyi itself has confirmed that it is considering an IPO for Lycra but has refused to provide further details about which market might be targeted, the sum to be raised and the financial organisations to which the project, which is still in its preliminary stages, will be entrusted. 

These reports have come to light a matter of weeks after Ruyi and sourcing giant the Fung Group signed off on a major partnership that seeks to develop "one of the largest transversal textile and apparel ecosystems in the world," notably aiming to take advantage of low manufacturing costs in Africa.