Sofa manufacturer and retailer Lorenzo launches IPO

Lorenzo International Limited, a sofa manufacturer based in Singapore with manufacturing facilities in Kunming, China and Malaysia launches its IPO today by offering 25,000,000 new shares to the public with 1,500,000 for public offer priced at S$0.22 per share. The company operates up to 29 retail stores in Singapore, Taiwan and Malaysia carrying the 'Lorenzo' brand name that is composed of the 'Dante' and 'Enzo' collections. In addition, the company's manufacturing facilities also exists as an ODM and OEM vendor to other global sofa retailers. Deriving more than half of its revenues from its retail business, it relies heavily on its sofa business.

The company reported a profit after tax of S$2.6 million with revenues of S$52.5 million for the year 2004. It estimates a profit of S$3.0 million for FY2005 with HY2005 profit at S$1.9 million. Though the company has shown steady growth in revenues and profits, it would be tough to repeat a similar standard achieved by HTL, another market player in the sofa and furniture business. The company's IPO is handled by UOB Asia.