Prada and its owners raised about HK$16.7 billion ($2.14 billion) in this year’s biggest Hong Kong Initial Public Offering (IPO) after the company sold shares near the low end of its target amid a global stock-market slump.
The luxury company, the Prada family and Intesa Sanpaolo sold 423.3 million shares for HK$39.50 each, according to two people familiar with the matter. The sale gives Prada a market value of about euro 9 billion ($12.7 billion), or 23 times 2011 earnings, said one of the people, who asked not to be identified because the details aren’t public.
The Milan-based company is the second foreign issuer in a week, after Samsonite International, to scale back its Hong Kong fundraising plans amid a five-week slump for the Hang Seng Index, which has lost 6.7 per cent since May 13. Prada, which starts trading in Hong Kong on June 24, sold stock at a higher valuation than global peers like LVMH, the world’s biggest maker of luxury goods.
President Miuccia Prada, granddaughter of founder Mario Prada, her husband, Chief Executive Officer Patrizio Bertelli, and other family members will receive about $1.3 billion from the sale, before fees and the exercise of overallotment options, and retain a stake worth $10.7 billion, according to data from the prospectus. Intesa will receive about $517 million, and the company about $298 million.
