Epic Group, a sustainable apparel manufacturer, has hired HSBC and Goldman Sachs for its pre-initial public offering (IPO) funding round, said two sources familiar with the situation.

The Hong Kong-headquartered garment maker is targeting to raise USD 150m in the latest round, one of the sources said.

The company has held early talks with some prospective investors, the sources said. It prefers to bring in international funds, and to leverage on their networks of business contacts and opportunities, one of the sources added.

However, the deal is not assured of materializing amid investor concern over Epic Group’s financials, which would be adversely affected by US President Donald Trump’s reciprocal tariff policy, one of the sources said.

Epic Group mainly engages in apparel production at its factories in Bangladesh, Ethiopia and Jordan. It exports to clients globally including the US-headquartered department store chain operator Dillard’s as well as retail giant Walmart.

Hong Kong IPO possible

Following the capital raise, Epic Group may explore a listing in Hong Kong, the sources said.

However, no final decision has been made, said the sources, noting that it’s also working with advisors to explore the possibility of a trade sale.

Epic Group secured a USD 100m debt financing package in the form of a USD 70m sustainability-linked loan and a USD 30m green loan from International Finance Corporation (IFC), as announced in June 2024.

Established in 1985, Epic Group is a manufacturer and supplier to global retailers, with services covering design and development, sourcing, manufacturing, beyond manufacturing, and technology, according to its website.

With over 30,000 employees, the company operates sales offices in Hong Kong, Dubai and New York, with designers based in New York, Hong Kong and London, as per its website.

In January 2025, it also formed a joint venture with Creative Group to co-develop Indian apparel business with an investment of approximately USD 60m, as disclosed.

Its listed peer Crystal International Group, with a market cap of HKD 12.92bn (USD 1.67bn), traded at HKD 4.53 per share on 2 May 2025, up 3.19% YTD. Its price-to-earnings (P/E) ratio was 8.31x on the same day.

HSBC declined to comment. Epic Group and Goldman Sachs did not respond to requests for comment.