initial public offerings (IPOs) trading on American exchanges

Sunday, June 12, 2011

Ferragamo to Raise as Much as 401.9 Million Euros in Milan IPO

(Bloomberg) -- Salvatore Ferragamo SpA’s initial public offering may raise as much as 401.9 million euros ($576.2 million), the luxury shoemaker said in a statement.

Ferragamo plans to sell about 38.3 million shares, equal to a 23 percent stake, at a price range of 8 euros to 10.50 euros a share for its offering in Milan, the Florence, Italy-based company said yesterday. The IPO would value the company at as much as 1.77 billion euros.

Including an overallotment option, the offering would raise as much as 442.1 million euros. The shares will be on offer from June 13 through June 23, the 84-year-old shoemaker said.
Ferragamo and other luxury-goods makers including Prada SpA are planning to sell shares to the public as demand for bags and shoes in Asia fuels growth and draws investors. The IPO values Ferragamo at as much as 24.4 times 2011 profit as estimated by banks arranging the sale. By contrast, LVMH Moet Hennessy Louis Vuitton SA, the world’s largest maker of luxury products, trades at about 18 times earnings.

Not all luxury-goods makers are opting for a public listing, however. Moncler SpA on June 6 pulled its plans to list shares in Milan, citing market conditions. The maker of $1,000 ski jackets chose instead to sell a stake to investment firm Eurazeo.
Prada’s IPO

Prada, which intends to list in Hong Kong, set a price range of HK$36.50 ($4.69) to HK$48 per share for its IPO, two people with knowledge of the matter said June 6. The offering would raise $2 billion to $2.6 billion based on the range, according to the people, making the Italian company’s share sale the largest consumer-goods IPO in Hong Kong. The stock is scheduled to start trading on June 24.

Banca IMI, which is helping to manage Ferragamo’s IPO, estimates the maker of 350-euro black satin sandals may post net income of 72.6 million euros this year and 86.9 million euros in 2012. The shoemaker, founded in 1927, ranks in the medium-high to high-end of the fashion market, according to IMI.

Ferragamo, whose shoes have been worn by Marilyn Monroe and Jennifer Lopez, reported net profit of 60.8 million euros in 2010 compared with a loss of 14.7 million euros a year earlier. Sales climbed 26 percent to 781.6 million euros. Earnings before interest, tax, depreciation and amortization advanced 83 percent in the period to 113.1 million euros.

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