Moncler IPO Priced at Top of Range as Demand Exceeds $27 Billion

Moncler, the Italian maker of $1,220 quilted polyester jackets, priced its initial public offering at the top of an indicated range after investors sought more than 31 times the amount of stock offered.

The value of orders from institutional investors exceeded 20 billion euros ($27.6 billion) for shares that will be priced at 10.20 euros apiece, the Milan-based company said yesterday in a statement. The sale values Moncler at 2.55 billion euros after the stock was offered in a range of 8.75 euros to 10.20 euros.

The IPO is the biggest in Italy since Enel Green Power SpA listed in November 2010, providing a further example of renewed investor appetite in Europe amid an economic recovery in the region. 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.

Most of the proceeds from Moncler’s IPO will go to Eurazeo SA, a French private-equity firm, and Carlyle Group. The sale will raise as much as 681 million euros, and there is an option to increase the offering size by 15 percent, Moncler has said.

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.

Photographer: Alessia Pierdomenico/Bloomberg

A visitor exits a Moncler store, a luxury ski wear retailer operated by Moncler SpA in Milan. Close

A visitor exits a Moncler store, a luxury ski wear retailer operated by Moncler SpA in Milan.

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Photographer: Alessia Pierdomenico/Bloomberg

A visitor exits a Moncler store, a luxury ski wear retailer operated by Moncler SpA in Milan.

The level of oversubscription for the offering exceeded both Cucinelli’s 17 times and Ferragamo’s 3.6 times.

Maintaining Growth

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, who isn’t selling any of his 32 percent stake in the offering.

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.

“In the short-term, the company will grow very fast indeed,” Mario Ortelli, an analyst at Sanford C. Bernstein, said by phone. With already high margins, Moncler “is a revenue expansion story,” the analyst said.

Moncler 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.

About 27 percent of Moncler will be publicly traded after the IPO, or 31 percent if the over-allotment or “greenshoe” option is exercised. Share trading is due to commence Dec. 16.

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. Lazard Ltd. is advising Moncler on the IPO.

To contact the reporters on this story: Andrew Roberts in Paris at aroberts36@bloomberg.net; Paul Jarvis in London at pjarvis@bloomberg.net

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

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