F-1: BrilliA Inc. Files for IPO, Offering 2.5 Million Class A Shares

BrilliA Inc., a Cayman Islands-based holding company for lingerie and apparel businesses, announces its initial public offering of 2.5 million Class A shares, aiming to list on the NYSE American under the symbol BRIA.

Summary

• BrilliA Inc., a holding company with subsidiaries in the BVI and Indonesia, is planning an IPO to offer 2.5 million Class A shares.
• The company intends to list its Class A shares on the NYSE American under the symbol 'BRIA'.
• The anticipated initial public offering price is expected to be between US$4.00 and US$5.00 per Class A Share.
• BrilliA operates through its subsidiaries, Bra Pro and MAP, focusing on the design, manufacturing, and distribution of ladies' intimate apparel.
• The company plans to use the IPO proceeds to develop its DIANA brand, expand its digital marketing platform, open retail outlets, and for general working capital.
• A.G.P./Alliance Global Partners is acting as the sole book-running manager for the offering.
• Upon completion of the offering, Mr. Salim, the controlling shareholder, will own approximately 56.8% of the Class A Shares and 100% of the Class B Shares, representing approximately 92.1% of the total voting power.

Sentiment

Score: 7

Explanation: The document presents a balanced view, highlighting both the company's strengths and the risks it faces. The company's growth strategies and future outlook are positive, but the document also acknowledges the challenges and uncertainties involved.

Positives

• The company has strong design and sourcing capabilities.
• The company maintains strong and stable relationships with key customers.
• The company has an experienced management team.
• The company has vertically integrated operations.

Negatives

• The company is dependent on its major customers.
• Developing the DIANA brand with limited brand recognition is challenging.
• Any disruption to the supply of and any increase in the prices of our raw materials could adversely affect our production, turnover and profitability.

Risks

• The company is dependent on its major customers.
• Developing the DIANA brand with limited brand recognition is challenging.
• Any disruption to the supply of and any increase in the prices of our raw materials could adversely affect our production, turnover and profitability.
• There could be a potential conflict of interest between our controlling shareholder Mr. Salim and our Company in the future with respect to the license of DIANA brand.
• Launching the DIANA brand raises risks such as an erosion of trust and reputation with our customers, conflicts of interest with our customers, market fragmentation leading to reduced margins, customer alienation, and innovation stagnation.
• The effect and impact of the recently enacted Omnibus Law on job creation in Indonesia are not immediately known and subject to ongoing review.
• Deterioration of political, economic and security conditions in Indonesia may adversely affect our operations and financial results.
• Terrorist activities in Indonesia could destabilize Indonesia, which would adversely affect our business, financial condition and results of operations, and the market price of our securities.
• Fluctuations in the value of the Indonesian Rupiah may materially and adversely affect us.
• Indonesia is vulnerable to natural disasters and events beyond our control, which could adversely affect our business and operating results.
• We may be affected by uncertainty in the balance of power between local governments and the central government in Indonesia.

Future Outlook

The company plans to expand its business through the DIANA brand, digital marketing, product and geographical expansion, and potential joint ventures or acquisitions.

Industry Context

The global lingerie market is valued at USD 88.32 billion in 2022 and is projected to grow at a CAGR of 5.7% through 2030. The company aims to capitalize on this growth by offering a wide range of products and expanding its market presence.

Comparison to Industry Standards

• The document mentions key players in the lingerie market such as Tennor Holding B.V. (La Perla), Wacoal Holdings Co., Ltd., and Victorias Secret Stores, LLC.
• The company aims to compete with these established brands by offering high-quality, innovative designs, inclusivity, and ethical practices.
• The company also plans to leverage its vertically integrated operation to provide cost-effective solutions.

Related Party Transactions

• The DIANA brand is licensed by MAP from PT Diana Mode Indonesia, in which Mr. Salim has a 25% beneficial interest.
• Bra Pro engages PT Star Alliance Intimates as a contract manufacturer, where Mr. Kendrew Hartanto has a 39.11% shareholding.
• MAP entered into a lease agreement with Salim Podiono for the company office.

Stakeholder Impact

• Shareholders: Potential for increased value through company growth and successful execution of strategies.
• Employees: Opportunities for growth and development within the company.
• Customers: Access to innovative, affordable, and high-quality lingerie products.
• Suppliers: Potential for increased business through the company's expansion.

Next Steps

• Develop the DIANA brand of products and distribution channel.
• Develop new customers through digital marketing.
• Further develop design and development capabilities.
• Product and geographical expansion.
• Expand business and operations through joint ventures, acquisitions and/or strategic alliances.

Key Dates

Keywords

IPO, Class A Shares, BrilliA Inc, Lingerie, Apparel, Offering, NYSE American, DIANA brand