Cashmere Clothier Cucinelli Surges in Trading Debut: Milan Mover
Brunello Cucinelli SpA (BC), an Italian maker of luxury cashmere clothing, rose 37 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 as much as 2.84 euros from the 7.75-euro offer price and were up 30 percent at 10.12 euros as of 10:30 a.m. That gave the Solomeo, Italy-based company a market value of about 688 million euros ($907 million).
Cucinelli follows competitors Prada SpA (1913) 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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