April 27 (Bloomberg) -- Brunello Cucinelli SpA, an Italian maker of luxury cashmere clothing, rose 50 percent on its debut in Milan trading after investors sought to purchase 17 times the amount of stock available in an initial public offering.
The shares gained 3.85 euros from the 7.75-euro offer price to close at 11.60 euros, giving the Solomeo, Italy-based company a market value of about 788.8 million euros ($1 billion).
Cucinelli follows competitors Prada SpA and Salvatore Ferragamo SpA in offering stock to the public in the last 12 months as demand for luxury goods in Asia fuels earnings growth and draws investors. The clothier raised 158 million euros this week after selling shares at the top end of a targeted range. The IPO was the first in Italy this year.
“Brunello Cucinelli is a small luxury player with excellent positioning,” Thomas Mesmin, an analyst at CA Cheuvreux, wrote in an April 17 note. He estimates earnings per share may rise 20 percent annually for the next three years.
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