TPG(US:TPG) Sou Hu Cai Jing·2025-12-18 02:36Core Viewpoint - TPG is exploring a dual exit strategy for its investment in APM Monaco, either through a sale or an IPO in the Hong Kong market, with a target valuation of at least $2 billion [1][3]. Group 1: Exit Strategy - TPG has engaged an international investment bank to design a "dual-track" exit plan for APM Monaco, aiming for a valuation of no less than $2 billion [1][3]. - The exit options include a direct sale of all shares or an IPO, utilizing a combination of "existing shares sale + new shares issuance" [1][3]. - The anticipated timeline for the exit process includes opening a data room for potential buyers by December 2025 and issuing the first round of bidding invitations in January 2026 [3]. Group 2: Financial Performance - APM Monaco is projected to achieve a 23% growth in same-store sales globally in 2024, with the Chinese market contributing 62% of this growth [3]. - The management forecasts a net profit of between $160 million and $190 million for 2025 [3]. - The company's revenue reached $910 million and EBITDA was $210 million in 2024, showing significant growth compared to 2018 figures [12]. Group 3: Company Background - APM Monaco was founded in 1982 and has evolved from a high-end jewelry maker to a brand focusing on affordable luxury items priced between €50 and €300 [6][12]. - The brand has expanded significantly in China, with 180 out of 260 global stores located in the country by 2018 [6][12]. - TPG, along with China Synergy and Trail Capital, acquired a 30% stake in APM Monaco in 2019, becoming the controlling shareholder [9][10]. Group 4: Operational Improvements - TPG has implemented several operational changes, including relocating 40% of production to Guangdong, which improved gross margins by 6 percentage points [12]. - The company launched a digital membership program in 2021, achieving a 42% repurchase rate [12]. - APM Monaco has adapted its store formats to reduce capital expenditure and improve investment recovery time, resulting in a significant increase in store numbers and efficiency [12].