By  on June 3, 2011

MILAN — Luxury firms are reporting brisk business in the first quarter and the outlook for the remainder of the year is bright. With these underpinnings, Italy’s three luxury initial public offerings are quickly taking shape and valuations of the firms are surging by the day.

Salvatore Ferragamo’s listing on the Milan Stock Exchange is expected by the end of the month, with the road show kicking off in London on June 13, according to sources, who say joint lead manager Banca IMI-Intesa Sanpaolo Group values the Florence-based firm at 2.25 billion euros, or $3.23 billion at current exchange. Until now, sources said Ferragamo’s IPO could value the company at around 1.5 billion euros, or $2.1 billion. Mediobanca and J.P. Morgan will act as global coordinators and joint book runners.

Italian fashion house Prada, whose IPO is expected to kick off on the Hong Kong Stock Exchange on June 23 or 24, plans to sell 423.3 million shares, or 16.5 percent of its capital, following a capital increase, said sources on Wednesday. As reported, 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. 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.

The road show will kick off June 6 in Singapore, followed by Hong Kong, London and Milan, and will end in New York.

On Wednesday, sources also said Banca IMI values Moncler, which got the green light to proceed with its listing on the Milan Stock Exchange this week, at 1.28 billion euros, or $1.84 billion. Moncler is expected to float more than 50 percent of the company by the end of the month. Banca IMI, BofA Merrill Lynch and Morgan Stanley International will act as global coordinators. Banca IMI will also be in charge of the IPO and act as sponsor.

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