MILAN—Aeffe SpA is kicking off its initial public offer Monday, ending along dry spell for fashion ipos in Italy.
Aeffe is selling as much as 37.26 percent of its capital in the ipo, which starts Monday and runs through July 18. The offer price range values the company between 440.23 million euros ($599.42 million at current exchange) and 579.82 million euros ($789.48 million).
On Monday, Aeffe will kick off a road show for press and prospective investors. Aeffe chairman Massimo Ferretti will outline the company’s expansion plans. Ferretti and his sister, designer Alberta Ferretti, currently control 100 percent of the company, which owns the Alberta Ferretti, Moschino and Pollini labels. Aeffe also manufactures anddistributes collections for Jean Paul Gaultier.
“We want to finance the growth of the company but above all accelerate it,” Massimo Ferretti told WWD in May.
The Aeffe ipo could serve as an industry bellwether, gauging investors’ appetite for luxury goods and fashion companies. As reported, several fashion companies including Prada SpA, Gianni Versace SpA and SalvatoreFerragamo SpA contemplate going public. Jeweler Damiani SpA is next in line to list in Milan. It is waiting for the green light from Italian stock market regulator Consob.
Specifically, Aeffe is offering up to 34.8 million shares. There is also a greenshoe over allotment option for an additional 5.2 million shares. The price range runs from 4.1 euros per share to 5.4 euros per share (or $5.6 per share to $7.4 per share). The definitive price is established at the end of the offer.
If demand is brisk and the offer is fully subscribed at the maximum price, Aeffe’s ipo could generate as much as 187.92 million euros. The greenshoe could contribute a further 28.08 million euros.
Aeffe’s shares are expected to debut on the Milan stock exchange in lat July but a timeframe hasn’t been finalized. Aeffe is listing on the STAR segment, which targets smaller companies with a market capitalization of less than 1 billion euros, or $1.34 billion at current exchange.