이 기사는 2020년 03월 05일 08:00 thebell 에 표출된 기사입니다.

South Korea’s newly formed private equity (PE) firm Midas Private Equity has invested in the nation’s clothing manufacturer Nobland via pre-initial public offering (IPO). Nobland plans to use the proceeds to improve its financial structure and invest in facilities to go public by 2022.

According to investment banking (IB) industry sources on February 28, Midas PE has invested 20 billion won in Nobland - OEM (original equipment manufacturer) and ODM (original design manufacturer) of cloths - that has GAP, Walmart, VINCE, Alexander Wang, etc. as clients. The company will issue 10 billion won worth convertible preferred stocks (CPS) and 10 billion won worth convertible bonds (CB) which the PE firm will take over.

Established in 1994, Nobland posts more than 400 billion won in annual sales. The company has secured its competitiveness in original design manufacturing category with its in-house design team.

Last year, Nobland merged with Noble Industry to enhance its operational efficiency and prepare for successful IPO. Noble Industry has sold high-end clothing while Nobland has sold more affordable products. It is said that Nobland, which has 700 billion won of debt and spends around four billion won as interest expenses annually, has partnered with Midas PE to secure additional growth engine. The latest investment by the financial investor is likely to stabilize the company’s debt ratio, which was at 216 percent as of the end of 2018. Nobland is also planning to boost its competitiveness by adopting smart hanger system on its assembly lines.

Midas PE has reportedly been attracted to Nobland’s stable profit generation and sales growth. Nobland’s annual sales have been on the rise thanks to its skilled workers in Vietnam and Indonesia. Its improvement in financial structure and investment in facilities will further increase the company’s profitability. Nobland is planning to go public by 2022.

(By reporter Jo Se-hun)