Kandal M. Venture Ltd. IPO: An Affordable Luxury Leather Goods Contract Manufacturer
Dominari Securities and Revere Securities are serving as underwriters for the IPO of Kandal M. Venture Ltd, a Cambodian-based contract manufacturer of luxury leather goods. The company is set to issue 2,000,000 shares at a price of $4.00-$5.00 per share.
Revenues and Earnings
The company’s financial performance is impressive, with revenues of $14 million in the last twelve months, and a net income of $1.1 million.
| Revenue ($ in U.S. dollars) | Net Income ($ in U.S. dollars) |
|---|---|
| $14 million | $1.1 million |
Kandal M. has a market capitalization of $81 million.
Business Overview
Kandal M. Venture Ltd is a holding company registered in the Cayman Islands, but it conducts its core business operations in Cambodia through its operating subsidiary, FMF. FMF is responsible for manufacturing leather goods, primarily handbags and other small leather goods. The company’s customers are well-known global fashion brands, such as those based in the United States.
Key Strengths
The company identifies the following as its key strengths:
• Long-term and strong business relationships with renowned global fashion brands, which are not guaranteed to be maintained in the future. • Long-term collaborative relationships with suppliers, which are susceptible to fluctuations in pricing, timing, and quality, and for which the company has limited control. • Extensive knowledge of the leather goods manufacturing process, up-to-date machinery, and efficient management, resulting in competitive pricing while maintaining quality and high efficiency. • An experienced management team with extensive knowledge of the leather goods manufacturing industry, but whose retention could have a negative impact on the company’s business.
Strategies
The company aims to accomplish its business objective and further strengthen its market position by pursuing the following key strategies:
• Broadening its customer base by expanding its geographical market reach to other key markets, such as the European markets. • Enhancing its production capacity to meet growing demand. • Establishing a new design and development center to enhance its product development capabilities.
Corporate History and Structure
Kandal M. Venture Ltd was founded in 2016 and is a holding company registered in the Cayman Islands. It conducts its core business operations in Cambodia through its operating subsidiary, FMF. FMF was established under the laws of Cambodia in 2017 to engage in the business of leather goods manufacturing.
Management Team
The company’s management team has extensive knowledge of the leather goods manufacturing industry, but the retention of key executives and personnel could have a negative impact on the company’s business.
Financing Details
The company plans to raise $9 million in its initial public offering, which will be issued at a price of $4.00-$5.00 per share.
- Underwriters: Dominari Securities and Revere Securities
- Shares: 2,000,000
- Price range: $4.00-$5.00 per share
The company’s website can be accessed at http://www.kandalmv.com/ and its phone number is +855-23425205.
Incorporated Quotation
We have managed to obtain a quote from the company regarding its IPO. The following is what it had to say:
“…Through FMF, our operating subsidiary, we are a contract manufacturer of affordable luxury leather goods with our manufacturing operations in Cambodia. We primarily manufacture handbags, such as shoulder bag, crossbody bag, tote bag, backpack, top-handle handbag, satchel, and other smaller leather goods, such as wallets. Our customers are well-known global fashion brands that are headquartered in the United States. With our craftsmanship and extensive knowledge of the leather goods manufacturing process, our product engineers convert our customers’ vision and design into leather goods products. Our products are primarily affordable luxury products that are made of leather and/or other materials.” – Kandal M.
Contact Information
Kandal M. Venture Ltd is located at Padachi Village, Prek Ho Commune, Takhmao Town, Kandal Province, Kingdom of Cambodia. It can be reached via phone at +855-23425205 or on the web at http://www.kandalmv.com/.
