Moncler Said Likely to Price IPO at Top of Range on High Demand

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, the Italian maker of $1,220 quilted polyester jackets, plans to price its initial public offering at 10.20 euros a share, the top of an indicated range, according to two people familiar with the transaction.

The sale was fully covered on the first day of the offer, said the people, who asked not to be named because the details aren’t public. The order book closes today and is more than 20 times subscribed, one person said. The shares had been offered in a range of 8.75 euros to 10.20 euros.

The IPO will raise 585 million euros ($806 million) to 681 million euros, with an option to increase the offering size by 15 percent, according to terms of the deal earlier seen by Bloomberg News. Most of the proceeds will go to Eurazeo SA, a French private equity firm, and Carlyle Group.

An external spokesman for Milan-based Moncler declined to comment on the pricing.

Moncler is seeking to repeat the IPO success of Brunello Cucinelli SpA, (BC) 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.

The skiwear maker aborted plans to list in 2011 in favor of a sale to Eurazeo. 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.

Economic Recovery

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 last month 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.

Companies in Europe, the Middle East and Africa raised about $32 billion in IPOs this year, more than double what they sold in 2012, data compiled by Bloomberg show.

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.

‘Greenshoe Option’

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. Ruffini isn’t selling any of his 32 percent stake in the offering. Trading in the shares will commence Dec. 16, according to the deal terms.

Bank of America Corp., Goldman Sachs Group Inc., and Mediobanca SpA are managing the sale, along with banks including UBS AG, JPMorgan Chase & Co. and Nomura Holdings Inc.

Les Echos reported yesterday that the IPO was 20 times subscribed.

To contact the reporters on this story: Ruth David in London at rdavid9@bloomberg.net; Andrew Roberts in Paris at aroberts36@bloomberg.net; Elisa Martinuzzi in Milan at emartinuzzi@bloomberg.net

To contact the editor responsible for this story: Jacqueline Simmons at jackiem@bloomberg.net

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