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Brunello Cucinelli Road Show Set After Final OK for Listing

On Thursday, the luxury fashion firm received the green light from Commissione Nazionale per le Società e la Borsa.

MILAN — Brunello Cucinelli SpA’s public listing is nearing reality.

On Thursday, the luxury fashion firm received the green light from Commissione Nazionale per le Società e la Borsa, or CONSOB, Italy’s equivalent of the Securities and Exchange Commission, for an initial public offering. This follows the approval from the Italian Stock Exchange earlier this week for the company’s shares to be listed on the Electronic Stock Market, or MTA, and allows Brunello Cucinelli to kick off its road show on Monday. A press conference will be held that same day in Milan to present strategies and details of the listing.

A maximum of 20.4 million ordinary shares, or 30 percent of the company’s share capital, will be put on the market. Ten percent of shares will be directed at the general public in Italy and 90 percent of the shares will be aimed at Italian and foreign institutional investors (excluding Australia, Canada and Japan).

Main shareholder Fedone Srl, controlled by Cucinelli, is expected to grant a purchase option of up to 2.04 million shares, or 10 percent of the shares offered, as part of the Greenshoe option. This can be exercised, either partly or in full, within a month from the initial trading day. If the Greenshoe option is fully exercised, the number of shares placed will total 22.4 million, equal to a free float of 33 percent of the share capital. Eight million shares, or 40 percent of the offer, are part of a capital increase by Brunello Cucinelli SpA, while 12.4 million shares, equal to approximately 60 percent of the offer, are provided by Fedone Srl and Fundita Srl.

The road show will end on April 27, when the share price will be determined, and trading is expected to begin on May 3. Bank of America Merrill Lynch and Mediobanca are global coordinators and joint book runners.

Cucinelli, known for its cashmeres and Italian craftsmanship, is valued at about 500 million euros, or $655.2 million at current exchange.

In the 2011 fiscal year, the firm’s earnings before interest, taxes, depreciation and amortization climbed 68 percent to 40 million euros, or $55.6 million at average exchange, on sales of 243 million euros, or $337.7 million, up 19 percent compared with the previous year.

The company has registered 50 percent growth over the past two years. Exports account for 70 percent of sales. There are 1,000 points of sale that carry the brand and 60 Brunello Cucinelli boutiques around the world. Based in Solomeo, near Perugia, the company has more than 700 employees.