NEW YORK, Jan 31 Reuters Amer Sports39; growing reliance on China for its revenue is weighing on the appetite of those considering buying into the sporting equipment maker39;s 1.8 billion U.S. initial public offering IPO, four people involved in the process told Reuters.

The company behind Arc39;teryx outdoor apparel, Salomon sporting goods and Wilson tennis gear generated 19.4 of its sales in China in the first nine months of 2023, up from 8.3 in 2020, according to its IPO prospectus.

Most of the company39;s sales come from the Americas and Europe, and while revenue in these regions has been growing, sales in China have been rising much faster. They were up 68 in the first nine months of 2023 compared to the corresponding period in 2022, the prospectus shows.

The sources, who requested anonymity to discuss the progress of the IPO, said that, despite this success, some potential investors have expressed concerns about Amer Sports39; fortunes intertwining with China39;s economy.

A spiraling property crisis and a local government debt crunch has driven many investors to reduce their exposure to China.

Amer Sports has also warned investors in its IPO prospectus that escalating trade tensions could in the future lead to tariffs or other curbs on its ability to sell goods in the U.S. that it makes or sources in China.

While Amer Sports39; IPO book is oversubscribed and the offering is not in jeopardy, the softening in investor demand could push the company to play it…