Belgian fashion group FNG has collected 60 million euros by issuing new shares. The new shares will be traded on the Amsterdam Stock Exchange and - for the first time - on the Brussels Stock Exchange as well.
FNG returns to Belgium with fresh capital
“The operation of turning FNG into a Belgian company again, including a listing on the Brussels Stock Exchange, has been completed and today is the day.” CEO Dieter Penninckx informs us. His fashion company earned nearly 60 million euros of new capital thanks to a new share issue.
Both institutional and private investors had the opportunity to subscribe to a new equity round of FNG till July 5th: the group issued around 2.2 million new shares, which ultimately yielded a valuation of EUR 27 per share. The group thus collects 59.9 million euros. 70,517 of over 2.2 million shares went to private investors. From Monday July 9th, the new shares will be publicly traded, both through the Amsterdam stock exchange - where the group has been listed for some time - and for the first time via the Brussels stock exchange.
Investments in Brantano expansion
With the newly acquired capital, FNG wants to further support the focus on Brantano. “We want to continue this path vigorously”, says Penninckx. Brantano’s online platform has been live for three months now: from the summer onwards, the brand wants to fill it with new shoes and clothes, but retain the link with the physical stores. These stores come in two new variants: Boetik by Brantano, which emphasize fashion and premium brands, and the large one-stop shops of Brantano Market.
According to Penninckx, the future is omnichannel: “We’re already proof of that. We are convinced we can compete with Zalando locally. Online turnover consists of three elements, of which the pure online sales is the smallest: our turnover via click to reserve and in-store via order pillars is significantly higher." The link with physical stores also reduces the return percentage, the fashion entrepreneur indicates: if physical stores are involved, only a fraction of the number of returns remains.” Being able to fit and collect in the stores is appreciated by our customers; having to go to the post office every time is not always the best experience.”
Major potential in online growth
Penninckx believes further online growth is possible, but this requires investments. The company therefore invests heavily in digital marketing and artificial intelligence. “If you don't offer 10,000 sku's, consumers will opt out because of limited choice. But having to browse too long, makes them loose interest. Thanks to A.I. we succeed in getting people to the desired products in less clicks.”
The other brands in FNG's portfolio, such as CKS, Claudia Sträter and Expresso, also benefit from the investments in Brantano's online platform. “We created a state-of-the-art platform. 90 % can also be used fort he other formulas.”