Prada Shares Outshine Facebook, China Bling: Chart of the Day

Miuccia Prada has trumped Mark Zuckerberg and Cheng Yu Tung in the battle of billionaires.

The CHART OF THE DAY tracks from the first trading day shares (FB) of companies that had the biggest initial public offerings since Prada SpA’s Hong Kong listing a year ago. The luxury-goods maker’s stock has climbed 29 percent from its offer price through June 14, while Cheng’s Chow Tai Fook Jewellery Co. plunged 40 percent and Facebook Inc. fell 26 percent from theirs, data compiled by Bloomberg show. Bankia SA (BKIA), which had the only other IPO available to investors above $2 billion in the period, slid 74 percent as the Spanish government took over the lender.

Shares in Prada, the Milan-based owner of the Miu Miu and Church’s brands, rose as first-quarter profit more than doubled and Chief Executive Officer Patrizio Bertelli said in May that the company would add 260 stores in the next three years. Chairman Miuccia Prada, her husband Bertelli and relatives own an 80 percent stake that’s worth about $13.5 billion, based on last week’s closing share price. The IPO raised $2.5 billion.

“Because Prada is under-penetrated compared to its peers, it has more potential to open outlets in more locations,” said Kok Chiew Sia, a Hong Kong-based analyst at DBS Vickers Research Sdn. She has a buy rating on Prada.

Hong Kong Exchanges & Clearing Ltd.’s other big debutante, Chow Tai Fook, which has more stores in China than McDonald’s Corp., has dropped as gold prices sank 15 percent from last year’s peak and China’s economy grew at its slowest pace in three years. The IPO generated $2.1 billion. Cheng, who controls the company, has seen his wealth shrink by $4.9 billion this year, according to the Bloomberg Billionaires Index. He still has a net worth of $15.2 billion, making him the 40th richest person, the gauge shows.

Shares in Facebook, based in Menlo Park, California, have fallen amid concern ad revenue growth isn’t keeping pace with surging membership at the world’s largest social network. The offering raised $16 billion. Chief Executive Officer Zuckerberg’s net worth has tumbled to $14.4 billion from $19.1 billion on May 18, when the stock listed in the U.S.

To contact the reporters on this story: Richard Frost in Hong Kong at rfrost4@bloomberg.net; Billy Chan in Hong Kong at bchan101@bloomberg.net

To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net

Enlarge image

Prada Shares Outshine Facebook, China Bling

Jerome Favre/Bloomberg

A mannequin displays Prada SpA merchandise in one of the company's stores in Hong Kong.

A mannequin displays Prada SpA merchandise in one of the company's stores in Hong Kong. Photographer: Jerome Favre/Bloomberg

0:45

June 18 (Bloomberg) -- Bloomberg's Betty Liu reports that Prada has surged about 30 percent since its Hong Kong IPO in 2011, putting it on top of the four largest IPOs over the past year. Prada's stock has outperformed Bankia, Chow Tai Fook and Facebook. She speaks on Bloomberg Television's "In The Loop." (Source: Bloomberg)