Prada IPO Valued at $15B

The Italian luxury firm had record profits and sales in 2010.

MILAN — Prada is on its marks, as its initial public offering is expected to take place June 23 or 24, and reports on the company’s possible valuation are beginning to reach clients.

This story first appeared in the May 26, 2011 issue of WWD.  Subscribe Today.

Banca IMI-Intesa Sanpaolo Group, which owns 5.1 percent of Prada and is one of the banks leading the IPO, estimates Prada may be valued at 10.7 billion euros, or $15 billion at current exchange, according to a source. Intesa forecasts Prada’s net profits may rise to 381 million euros, or $536.3 million, in 2011 and to 503 million euros, or $708 million, in 2012. Intesa’s valuation is based on around 21 times Prada’s estimated 2012 profits.

The Italian luxury firm had record profits and sales in 2010. In the year ended Jan. 31, the company reported a 150.4 percent surge in net profits to 250.8 million euros, or $331 million at average exchange. Revenues totaled 2.05 billion euros, or $2.71 billion, up 31.1 percent compared with the year before.

Until recently, analysts have said the IPO could value the company at up to $9.5 billion.

UniCredit, CLSA-Crédit Agricole Group and Goldman Sachs were tapped as joint global coordinators and joint book runners on the proposed IPO.

Last week Prada received the green light for its listing on the Hong Kong Stock Exchange, according to sources, although the company had no comment. The road show will kick off June 6 in Singapore, followed by Hong Kong, London and Milan, and will end in New York on June 17. Prada’s goal is to list a 20 percent stake.

Banca IMI-Intesa Sanpaolo is expected to sell its shares, while the remainder of the shares being sold will come from designer Miuccia Prada and chief executive officer Patrizio Bertelli, who control the majority 95 percent stake through Amsterdam-based Prada Holding BV.