Recovering equity markets, burgeoning mergers-and-acquisitions activity in the fashion world and strong earnings results for fiscal 2010 were the impetus for luxury companies to launch long-planned IPOs.
After postponing its initial public offering several times over the last decade, Prada will be the first of a string of Italian companies to list on the stock exchange, with Moncler SpA and Salvatore Ferragamo SpA to follow shortly afterward.
The proceeds from the stock market listing will help Prada embark on an aggressive store opening program, with a clear focus on Asia.
Prada’s road show is charging full steam ahead. Its first leg in Singapore drew bids for all the shares reserved for institutional investors.
The Italian luxury goods company outlined the financial details of its long-awaited initial public offering.
That new lower range values the company between 101.07 billion Hong Kong dollars and 108.11 billion Hong Kong dollars, or $12.98 billion to $13.88 billion.
Market watchers claim the offering’s luxury price tag and the fact that Hong Kong investors are subject to pay capital gains tax in Italy is making retail investors think twice.
Facing a tepid reception for retail shares and slumping stock markets worldwide, Prada’s IPO price comes in on the bottom of the most recent price guidance of 39.50 Hong Kong dollars to 42.25 Hong Kong dollars, or $5.06 to $5.42 a share.
Prada SpA made a surprising debut on the Hong Kong Stock Exchange Friday, with its shares closing slightly higher than the final offer price.
The overallotment lowers the controlling shareholder Prada Holding BV’s stake in the company to 80 percent, down from 82.5 percent.
After Prada and Moncler, Salvatore Ferragamo SpA filed documents to list on the Italian Stock Exchange.
The company received the green light to pursue its initial public offering on the Milan Stock Exchange, which is expected to take place by the end of the month.
The Florence-based company will float about 25 percent of its stock on the Milan Stock Exchange.
The company priced its initial public offering in the midrange of its price guidance, setting each share at 9 euros, or $13 at current exchange, in a flotation that values the company at 1.5 billion euros, or $2.1 billion.
The company’s IPO has been one of the most successful the fashion sector has seen in a long time.