E-Land Group will list its China corporations overseas

Korean retailer E-Land Group will list its Shanghai-based corporations on the overseas stock market, the company said Wednesday.

The group will first merge the corporations, E-Land Fashion (Shanghai) and E-Land International Fashion (Shanghai), and put a pre-initial public offering (IPO) placement on the merged unit this year.

In a pre-IPO placement, a small group of investors is allowed to purchase shares at lower prices right before the actual IPO takes place.

“The measure is a fundamental reform of our corporate structure,” said a high-ranking spokesman from the company.

The company’s announcement follows its recent listing of E-Land Retail and sale of its hypermarket franchise Kim’s Club as a preemptive measure to better its balance sheet.

The most probable market for the listing is Hong Kong, but the Shanghai or Shenzhen Stock Exchanges in China are also possibilities.