Prada Said to Win Approval for $2 Billion Hong Kong Initial Public Offer
Prada SpA, the Italian producer of Miu Miu bags and Church’s shoes, won approval from Hong Kong’s stock exchange for a $2 billion initial public offering, two people with knowledge of the matter said.
The Milan-based company set June 24 as a tentative listing date, said the people, who declined to be identified because the information is private. Intesa Sanpaolo SpA (ISP)’s Banca IMI SpA, Credit Agricole SA’s CLSA Asia-Pacific Markets, Goldman Sachs Group Inc. (GS) and UniCredit SpA (UCG) are managing the IPO.
Prada follows European companies including L’Occitane International SA (973) in seeking to sell shares in Hong Kong, where IPOs reached a record last year. By listing there, the Italian company will tap local funds and individual investors betting on the luxury-goods industry’s growth in Asia. Bag makers Coach Inc. and Samsonite LLC are also planning listings in Hong Kong.
A spokesman for Prada in Milan, who declined to be identified citing company policy, had no comment.
Mainland China will remain the fastest-growing market for luxury goods in 2011 as sales rise 25 percent to 11.5 billion euros ($16.5 billion), consulting company Bain & Co. said this month. The country is on course to become the world’s third- largest luxury market in five years, it said.
Prada’s net income more than doubled to 250.8 million euros last year on growth in the Asia-Pacific region, where sales jumped 63 percent. Total revenue increased 31 percent to 2.05 billion euros, the company said March 28.
Prada, which postponed plans to list in 2008 because of adverse market conditions, is controlled by Chief Executive Officer Patrizio Bertelli, his wife Miuccia Prada and her family. The company sells clothing and accessories under the Prada, Miu Miu, Church’s and Car Shoe brands.
Prada may start taking orders for stock on June 6 and plans to meet investors in cities including Hong Kong, Milan and New York, people familiar with the plans said May 16.
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