Salvatore Ferragamo SpA’s initial public offering may raise as much as euro 401.9 million ($576.2 million), the luxury shoemaker said in a statement.
Ferragamo plans to sell about 38.3 million shares, equal to a 23 per cent stake, at a price range of euro 8 to euro 10.50 a share for its offering in Milan, the Florence, Italy-based company said yesterday. The IPO would value the company at as much as euro 1.77 billion. Including an overallotment option, the offering would raise as much as euro 442.1 million. 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 euro 350 black satin sandals may post net income of euro 72.6 million this year and euro 86.9 million 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 euro 60.8 million in 2010 compared with a loss of euro 14.7 million a year earlier. Sales climbed 26 per cent to euro 781.6 million. Earnings before interest, tax, depreciation and amortisation advanced 83 per cent in the period to euro 113.1 million.