Moncler Said to Find Share Buyers in $1.1 Billion Skiwear IPO

Photographer: Valentin Flauraud/Bloomberg

A pedestrian passes an advertisement in the window of a Moncler SpA fashion store in Gstaad. Close

A pedestrian passes an advertisement in the window of a Moncler SpA fashion store in Gstaad.

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Photographer: Valentin Flauraud/Bloomberg

A pedestrian passes an advertisement in the window of a Moncler SpA fashion store in Gstaad.

Moncler, an Italian maker of $1,220 quilted polyester jackets, has demand for all the shares in its initial public offering to raise as much as 783 million euros ($1.1 billion), said three people with knowledge of the sale.

The deal has subscriptions across the price range of 8.75 euros to 10.20 euros, said the people, who asked not to be identified while the transaction is under way. The IPO will raise 585 million euros to 681 million euros, with an option to increase the offering size by 15 percent, according to terms of the deal. Most of the proceeds will go to Eurazeo SA, a French private-equity firm, and Carlyle Group.

Moncler is seeking to repeat the IPO success of Brunello Cucinelli SpA, the maker of $3,195 cashmere cardigans, and Salvatore Ferragamo SpA (SFER), which sells $675 patent-leather platform heels. Shares in both companies have more than tripled since they were listed in Milan in 2012 and 2011, respectively, encouraging Moncler’s owners to make a second attempt at an IPO.

“They are coming at a time when people want luxury,” Rahul Sharma, managing director of Neev Capital, a London-based consulting company, said by phone. “Anything that caters to the high-end, investors are generally quite pleased to look at.”

The skiwear maker aborted plans to list in 2011 in favor of a sale to Eurazeo. (RF) The private-equity firm owns a 45 percent stake and will sell 14 percent in the IPO, the terms show. Carlyle Group owns 18 percent and will sell half its holding.

Constantia Withdrawal

Moncler is selling as investors return to IPOs in Europe amid an economic recovery. Even so, some deals have foundered.

Packaging company Constantia Flexibles AG withdrew its planned $1.1 billion IPO in Frankfurt this week after orders came in at the low end of the price range, three people familiar with the transaction said. Constantia said it couldn’t ensure “healthy aftermarket development” if the IPO had been done.

Dubai developer Damac Real Estate Development Ltd. yesterday extended the marketing period for its London IPO and is planning to sell shares at the bottom of the price range, according to people familiar.

Issuers in Europe have raised $28 billion from IPOs this year, about triple what they sold in the same period in 2012, according to data compiled by Bloomberg.

Moncler has about 100 of its own outlets and also distributes products in department stores as well as online. It plans to open about 20 stores a year, including in Russia, the Americas and Asia, according to Chairman Remo Ruffini.

The expansion is aimed at maintaining growth that’s outpacing rivals -- even Cucinelli. Sales rose 35 percent to 489 million euros in 2012, while revenue at Cucinelli increased 15 percent to 279 million euros.

About three-quarters of Moncler’s sales are derived from winter apparel, a reliance that makes it a riskier investment proposition than peers, Sharma said.

Product Development

“It’s a very narrowly focused brand at the moment,” he said. “They’re very early in terms of developing the product.”

Ruffini, who bought the company about a decade ago and re-engineered its “piumino” quilted jackets to be less bulky, isn’t selling any of his 32 percent stake in the IPO.

About 27 percent of the Milan-based company will be publicly traded after the IPO, or 31 percent if the over-allotment or “greenshoe” option is exercised.

The pricing will be announced on Dec. 11 and trading in the shares will commence Dec. 16, according to the deal terms.

Bank of America Corp., Goldman Sachs Group Inc. (GS), and Mediobanca SpA are managing the sale, along with banks including UBS AG, JPMorgan Chase & Co. and Intesa Sanpaolo SpA.

To contact the reporters on this story: Paul Jarvis in London at pjarvis@bloomberg.net; Francesca Cinelli in Milan at fcinelli@bloomberg.net; Ruth David in London at rdavid9@bloomberg.net

To contact the editor responsible for this story: David Risser at drisser@bloomberg.net

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