Handbag maker Sitoy says raises $87 mln in HK IPO

HONG KONG Dec 5 (Reuters) - Hong Kong handbag maker Sitoy Group Holdings Ltd said on Monday it raised HK$677.2 million ($87 million) in an initial public offering before the exercise of an over-allotment option, and trading in its shares would begin on Dec 6.

In a filing to the Hong Kong bourse, Sitoy said its shares had been priced at HK$2.95 each. It plans to use proceeds from the offering to expand manufacturing capacity and its retail business.

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Founded in 1968, Sitoy makes handbags and leather goods for Prada and other global brands. Bank of America Merrill Lynch was hired as sole lead on the deal, IFR, a Thomson Reuters publication, reported last week.

Italian fashion house Prada is buying nearly a fifth of the IPO, IFR reported earlier.. (Reporting by Donny Kwok; Editing by Jonathan Hopfner)