Fila Korea Ltd., which in March 2007 purchased the Fila brand from Sports Brands International Ltd., had the second-best debut on South Korea's Kospi Index this year. The Seoul-based company surged to 68,700 won ($60) at the 3 p.m. close on the Korea Exchange, doubling from the initial public offering price of 35,000 won ($30), according to Bloomberg News.
Fila Korea and some of its shareholders raised 113.8 billion won ($99 million) by offering 3.25 million new and existing shares at the top end of the indicative price range. The proceeds will be used to pay down the debt remaining from the 2007 acquisition and to promote further marketing activities in the United States where substantial progress has already been made over the last three years to increase Fila's visibility and market share.
According to Yoon Soo (Gene) Yoon, the Chairman of Fila Korea, “The occasion of our IPO marks a significant turning point for the Fila brand and our company. It is only fitting that the IPO comes just a few months before the Fila brand's 100th anniversary year, and we are proud and honored to continue to build on its great tradition and illustrious history.”
The offering was underwritten by Samsung Securities Company.