Posts tagged 'prada'

Snap news

Breaking pre-market news on Friday,

- Management offer to take Rab Capital private at 10p a share — statementRead more

Snap news

Breaking pre-market news on Friday,

- Prada raises $2.1bn in IPO; shares priced at foot of range  – reportRead more

Prada raises $2.1bn in IPO

Italian fashion house Prada raised $2.1bn in a Hong Kong IPO on Friday, about a fifth lower than initially sought, as risk aversion weighed on the deal, reports Reuters. The Milan-based company priced its IPO at HK$39.50 a share, the bottom of a revised indicative price range issued on Thursday, according to three sources with direct knowledge of the deal. Prada had originally targeted garnering up to $2.6bn. The lower-than expected raising comes a day after luggage maker Samsonite International fell about 8% in its HK trading debut. Despite the glamour around Prada’s IPO, increased volatility in global markets and Samsonite’s poor debut weighed on the offering, with Prada cutting the mid-point of its IPO on Thursday. BeyondBrics  asks whether the timing of Prada’s HK IPO could have been any worse.

Samsonite in dismal HK debut

Samsonite shares closed nearly 8% lower on their first day of trading in Hong Kong on Thursday, despite being priced at the bottom end of revised price guidance, reports the FT. The disappointing debut by the US luggage maker could hurt plans by other western brands to tap the Hong Kong stock market for capital and came as Italian luxury brand Prada lowered the top amount it was seeking to raise there and, according to Bloomberg, priced its IPO below the middle of its marketed range.  Samsonite’s stock opened at HK$13 on Thursday, 10.3% lower than its listing price of HK$14.50. It closed at HK$13.38, 7.7% lower, against a 1.75%  fall in the benchmark Hang Seng index. The timing of the listing was considered a key factor in the stock’s first-day performance. The Hang Seng index, down 7.3% this month, has suffered from a combination of eurozone woes, bearish sentiment on Wall Street and fears of China’s property bubble bursting. The company raised HK$9.73bn on Friday after pricing its IPO at a 2011 earnings multiple of 18.3 times, compared with 22 times at the top of the original indicative price range.

Prada IPO faces tax hurdle

Prada’s efforts to woo retail investors to its planned US$2.6bn initial public offering in Hong Kong have met resistance, with some potential buyers put off by the prospect of having to pay Italian capital gains tax and dividend withholding tax, reports the FT. The IPO is still on track because at least 90 per cent of the shares will be allotted to institutional investors, and the offer is more than four times subscribed, two people familiar with the matter said.

Prada gears up for HK IPO

A glitzy roadshow last week in Hong Kong ahead of Prada’s planned HK$20.31bn ($2.63bn) initial public offering on June 24 failed to impress fund managers, who expressed doubts over a price-earnings ratio of as much as 27 times valuation for the Italian fashion house – at least 20% ahead of its nearest rival Burberry, reports the FT.  Fund managers in particular noted that Prada comes in at 18 times the p/e of LVMH, the world’s largest luxury brand, and that it is competing in an increasingly crowded market. Christfund Securities research said the China luxury consumption story might not be enough to overcome the eye-watering valuation. The WSJ says that as sentiment toward some IPOs in Hong Kong begins to sour, Prada’s IPO and those of other retailers betting on growing Chinese demand will be closely watched.

PPR’s grosse acquisition

There’s ripple of excitement in the luxury goods sector on Tuesday morning, following reports that Gucci and Puma-owner PPR is on the prowl.

Having seen arch rival LVMH swoop for Bulgari, PPR is in talks to make une grosse acquisition in the luxury goods sector, according to La TribuneRead more

Snap news

Breaking pre-market news on Monday,

- Prada sets price range for flotation ; could raise up to $2.6bn — reportRead more

Prada plans expansion with IPO

Italian fashion house Prada plans to use most of the proceeds from its Hong Kong initial public offering for expansion and renovation of its stores over the next 18 months as the company bets on increasing demand for luxury products in China and the rest of Asia, reports Reuters. Milan-based Prada hopes to sell 423.3m shares, equivalent to 16.5% of its enlarged capital, according to a deal term sheet seen on Wednesday. The IPO has been valued at around $2bn About 14% of the shares will be sold in a primary offering with proceeds going to Prada, while 86% will come in a secondary offering from shareholders Prada Holding BV and Intesa Sanpaolo. The IPO could be raised by 63.5m shares if underwriters exercise a greenshoe option to meet demand for the stock.

Prada, retailers, seek HK investors

Retailers continued moves to tap billions of dollars from Hong Kong investors, as Italian fashion house Prada on Monday moved closer to its planned $2bn IPO, and local jewelry retailer Chow Tai Fook prepared to raise US$3bn-$4bn in an offering next year, reports the WSJ. Meanwhile, luxury secondhand handbag retailer Milan Station surged 66% on its Hong Kong trading debut on Monday. Jewelry seller Chow Tai Fook, which aims for an HK IPO in the 2012 first quarter, is a unit of Chow Tai Fook Enterprises, controlled by HK property magnate Cheng Yu-Tung. JPMorgan, HSBC, Goldman Sachs, Deutsche Bank, Citigroup, Credit Suisse and UBS have been appointed to handle the IPO, said people close to the matter. Meanwhile, Prada, which has failed several times in the last decade to list its shares, began informal talks with investors on Monday about its plan to sell more than 423m shares, ahead of presentations to institutional investors from June 6. About 86% of the shares to be sold will come from Prada’s existing shareholders.

Snap news

Breaking pre-market news on Friday,

- BP wins $1bn in Macondo payments from MOEX — statementRead more

Samsonite to list in HK

Samsonite, the suitcase manufacturer, has kicked off a $1bn-$1.5bn initial public offering in Hong Kong, becoming the latest consumer goods group to choose to list in China, reports the FT. Prada, the Italian fashion house, plans to float in Hong Kong next month, while luxury shoe group Jimmy Choo is also eyeing a listing, after L’Occitane, the French cosmetics company, raised $700m in a landmark Hong Kong IPO last year. Samsonite – owned by buy-out group CVC , with a near-70% stake, and UK bank RBS – will start gauging investor demand for the share sale on Thursday. It plans to start the bookbuilding process and set a price range for the shares on May 30, which are due to start trading in Hong Kong on June 16. The WSJ notes Samsonite’s fortunes have greatly improved since its troubles in the financial crisis.

What’s going on in IPO land?

First it’s RenRen, then Dunkin’ Donuts and of course, the mother of them all, Glencore, to name a tiny handful of the highest-profile IPOs – planned or executed – making headlines on Thursday.

In the US alone, 31 companies filed to go public in April – including several more Chinese companies such as dating site Jiayuan.com. Oddly, there were also 31 US IPOs last April, according to Dealogic. But apart from this strange coincidence, this is the biggest monthly lineup of IPOs in America since August 2007, according to Dealogic figures. Read more

Prada eyes HK listing

Prada, the Italian fashion group, is set to list on the Hong Kong stock exchange as early as May as it seeks to tap growing Asian demand for luxury goods, reports the FT. The decision by the group, majority owned by designer Miuccia Prada, her family and her husband, CEO Patrizio Bertelli, is a first for Europe’s high-end fashion industry and underlines HK’s rising status as a hub for international listings. Analysts say that in a robust HK market, the group could be worth as much as €5bn-€6bn, whereas Milan, among the weakest markets in the past year, would provide less chance of achieving that. But don’t hold your breath, suggests the WSJ, noting that Prada’s road to listing “has been long and filled with potholes”.

Prada considers listing in Hong Kong

Prada is weighing up a listing in Hong Kong in an attempt to tap investor enthusiasm for luxury goods companies in Asia, the FT reports. In a sign of the rising appeal of Hong Kong for foreign companies as a place to list, the Italian luxury goods company is looking at the territory over Milan or London as it believes it might obtain a higher valuation there, say people close to the talks. The group, which has abandoned several attempts at listing in the past decade citing unfavourable market conditions, is expected to decide this year. People familiar with Prada say in a buoyant market, the group could be worth as much as €5bn-€6bn ($7bn-$8.4bn). Meanwhile, the FT adds that Hong Kong is on track for the second year in a row to eclipse its rivals Shanghai, London, and New York as the world’s biggest centre for IPOs.

IPOs — and hot money — hit Hong Kong

Prada is the latest foreign company to weigh up a listing in Hong Kong, the FT reports, with the Italian luxury outfit attempting to tap investor enthusiasm for deluxe goods companies in Asia. The group has abandoned several attempts at listing in the past decade citing unfavourable market conditions, but is expected to decide this year. If Prada does head to the Hang Seng, it will only be joining dozens of foreign companies who have made the journey — from Mongolian mining groups to French perfume houses — making Hong Kong increasingly the world’s centre for initial public offerings, the FT adds. Then again, Hong Kong also risks becoming a world centre for hot money. The WSJ Real-Time China Report argues that investors will transplant excess liquidity created by the return of quantitative easing in the US to Hang Seng stocks.

Prada postpones Milan listing

Prada said it won’t list on the Milan stock exchange before autumn because of a glum market, in the latest sign that global financial turmoil is spreading to the normally resilient luxury-goods industry, reports the WSJ. The Italian fashion brand is now looking to a second window of opportunity between September and mid-November for its stock-market debut. Prada had pencilled in two potential opening dates for its IPO, in June and in the autumn, but had said its decision would ultimately depend on market conditions.

Why Prada is confident of a ‘glamour listing’ in mid-2008

They do things differently in the high-flying world of fashion, and after more U-turns than a supermodel on a catwalk over the past seven years (yes, seven), it seems Prada’s long-awaited IPO is scheduled for June – unfazed by signs that US economic turmoil is spreading to Europe’s luxury-goods sector, reports the WSJ on Thursday.

“The current timetable has the listing set in the second half of June,” a person familiar with the matter told the Journal. Read more

Ferragamo and Prada on track for listings

Salvatore Ferragamo and Prada, two of the world’s biggest fashion names, are sticking to plans for stock-market listings in Milan next year despite signs the luxury-goods sector is heading for turbulent times, reports the Wall Street Journal. For each, the planned listing of a minority of its shares is perhaps the best shot for the family owners to raise the cash necessary to fund expansion around the world without sacrificing control. But the desire to go public against the increasingly difficult market backdrop shows how critical the need for financing has become for Europe’s family-owned fashion labels. Ferragamo expects to announce in the next few days bankers to co-ordinate its IPO, while Prada has hired Unicredit as book runner and global co-ordinator for its listing.

Salvatore Ferragamo on the road to €1bn flotation

Salvatore Ferragamo, the Italian luxury goods group, is on track for a €1 billion flotation in Milan next year, reports the Times. Michele Norsa, chief executive of the Florence-based company, said that Ferragamo would start preparing in April for its listing once it had completed a three-year business plan.  Industry observers expect the company, which crafted the ruby slippers worn by Judy Garland in the 1939 film The Wizard of Oz, and was responsible for the metal-reinforced stiletto heels glamorised by Marilyn Monroe, will have a market value of about €bn. The announcement comes amid speculation that fellow Italian luxury goods groups Prada and Giorgio Armani are also preparing for stock market listings. Floating the family-owned company has been on the cards since the Ferragamos hired Mr Norsa, a former head of Valentino, as chief executive last year, with a mandate to modernise the group.