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Top Biz News

Carpenter Tan plans HK public float

By Ding Qingfen and Bao Chang (China Daily)
Updated: 2009-12-09 07:57

Chinese comb maker Carpenter Tan is planning an initial public offering of its shares on the Hong Kong bourse, said a senior company official.

"Carpenter Tan has got approval to offer shares on the Growth Enterprise Market of the Hong Kong Stock Exchange," Zhou Pei, spokesperson of Carpenter Tan Holdings Ltd, told China Daily yesterday.

According to Chinese media reports, the company plans to raise HK$100 million from its IPO by the end of this month. The reports also said Hong Kong-based First Shanghai Securities might underwrite the offering. Zhou, however, refused to divulge any details, citing corporate policy.

"The funds raised from the float would be mainly used to expand the company's network both at home and abroad, and also for developing wooden furniture and ornaments," said Zhou.

But what makes Carpenter Tan stand out amongst others is its remarkable success amid great odds.

Carpenter Tan began its journey 15 years ago when Tan Chuanhua, a physically handicapped man with a baldpate decided to enter the comb making business in Chongqing in southwestern China.

Born into a poor carpenter family and saddled with debt, of nearly 300,000 yuan, Tan had many a mile to go before he tasted success.

Tan left his job as a primary school teacher due to discrimination from colleagues on his disability. He then tried his luck in a host of other professions, before venturing into his real expertise as a carpenter.

In 1993, Tan set up a company for making wooden combs and named it Tan Carpenter. Relying on exquisite skills, the brand gained popularity within a year.

By 2008 it had expanded into a company with a sales network of over 700 chain stores, including five overseas outlets. It also reported annual sales in excess of 200 million yuan during 2007.

In 2006, the company diversified into wooden products beyond combs and also started collaborating with renowned European artists. But, "the comb business is and will be the main focus of Carpenter Tan, as it accounts for nearly 80 percent of the sales," said Zhou.

"Domestic market will be main focus of our expansion," he said.

Chinese consumers are now more concerned about the quality, design and brand of their daily necessities and that includes combs too. Wang Xiaofei, a sales girl at a Carpenter Tan shop in Chaoyang district of Beijing, told China Daily that the best selling combs are the ones priced at 200 yuan.

"People are buying combs as gifts for friends or families," said Wang.