Prada-backed Sitoy aims to raise $95 mln-term sheet

HONG KONG - Hong Kong handbag maker Sitoy Group could raise up to $94.6 million in a Hong Kong initial public offering, according to a term sheet of the deal seen by Reuters on Wednesday.

Italian fashion house Prada, whose June IPO was the biggest in Hong Kong this year, is buying nearly a fifth of the IPO, IFR, a Thomson Reuters publication, reported earlier this month.

Milan-based Prada, which raised about $2.5 billion in its IPO, agreed to buy 19.6 percent of Sitoy shares on offer, with venture capital firm IDG buying 22 percent, IFR said.

Sitoy plans to sell 249.6 million shares at a price of HK$2.95 per share, putting the total deal at some HK$736.3 million ($94.6 million), the term sheet said.

Founded in 1968, Hong Kong-based 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 reported.

($1 = 7.7928 Hong Kong dollars)

(Reporting by James Pomfret; Editing by Hans-Juergen Peters)