PARIS — Villa Moda, a pioneering luxury retailer in the Middle East, is eyeing an initial public offering as early as December, WWD has learned.
According to market sources, the retailer of such marquee brands as Gucci, Prada, Fendi and Dolce & Gabbana plans to list approximately 40 percent of the company on the stock exchange in Kuwait, where Villa Moda was founded in 1992.
It is understood Sheikh Majed Al-Sabah, the founder, chief executive and public face of the retailer, plans to retain his majority stake.
Villa Moda, which has two locations in Kuwait and branches in Dubai, Qatar and Damascus, plans to use the capital raised to fund its expansion in the fast-growing Middle East region, plus new markets like Asia and Europe.
As reported, Villa Moda plans to open a unit at the Power Station, a major retail and residential development in London slated to open in 2009. Next spring, Villa Moda is set to unveil a 32,000-square-foot complex in Bahrain boasting boutiques ranging from Bottega Veneta to Viktor & Rolf.
It could not immediately be learned which banks are underwriting the offering, but it is believed Villa Moda would be the first luxury fashion retailer in the Mideast to go public. The company generates estimated annual revenues of about 50 million euros, or $62.5 million at current exchange.
The listing would represent an exit plan for several Kuwait-based investors, who took stakes in the fast-growing retailer in 2004.
Al-Sabah was traveling on Friday and could not be reached for comment.