The management team of Wah Sun Handbags from left to right: ceo Ma Hing Ming, chairman Ma Hing Man, and financial controller Dominic Li.

HONG KONG–Non-leather bags maker Wah Sun Handbags, whose major customers include Aldo Group and Nine West Holdings, unveiled details of its proposed initial public offer on the Hong Kong Stock Exchange to commence on Wednesday.

Trading under the stock code 2683, the offer price range is set between $1 to $1.38 Hong Kong dollars a share, or 13 to 18 U.S. cents.

The company is the second fashion manufacturer to list on the Hong Kong exchange in four months, following Crystal International Group, a clothing producer for L Brands, Fast Retailing and others, which went public in October.

Citing a Frost & Sullivan report, Wah Sun Handbags said it was the fifth-largest non-leather handbag manufacturer in the world in 2016, although the industry is highly-fragmented and its global market share stands at 0.5 percent. It is also the second-largest non-leather bags manufacturer in China by sales.

Established in Hong Kong in 1989 with production facilities in southern China and Cambodia, Wah Sun mainly manufactures mass market and middle-end priced products using materials like PU and PVC. In 2017, the firm had profits of 54.9 million Hong Kong dollars, or $7.02 million, an increase of 14.1 percent over the year before, on sales of 193.9 million Hong Kong dollars, or $24.8 million.

Wah Sun Handbags samples.

Wah Sun Handbags samples.  Tiffany Ap

Its two manufacturing facilities in Dongguan, China and Kampong Speu in southwest Cambodia employ over 4,750 personnel and produced 9.2 million bags last year.

Wah Sun plans to mainly use the funds raised from the IPO to invest in its Cambodian operations, which it began in 2013. Around 65 percent will be used to expand the    Cambodian production and teams.

Wah Sun’s 2018 customer portfolio contains 15 firms, including multinationals headquartered in the U.S., Canada, Spain, Sweden, and Japan. In 2017, 71.5 percent of Wah Sun products were exported to North America, 17.5 percent to Europe, 8.3 percent to Asia, and the remaining to other countries.

The retail sales of global non-leather fashion handbags has grown to $23.7 billion in 2016, up from $17.9 billion in 2012, a compound annual growth rate (CAGR) of 7.3 percent, according to Frost & Sullivan. The market is expected to reach $31.1 billion in 2012, representing a CAGR of 5.6 percent from 2016.

DBS Asia Capital Limited is the sole sponsor, bookrunner and lead manager of the offering.