By  on June 24, 2011

MILAN — Salvatore Ferragamo SpA on Thursday priced its initial public offering in the midrange of its price guidance, setting each share at 9 euros, or $13 at current exchange, in a flotation that values the company at 1.5 billion euros, or $2.1 billion.

The Florence-based luxury house was offering shares ranging from 8 euros to 10.50 euros, or $11.50 to $15.10. Ferragamo plans to float about 25 percent of its stock on the Milan Stock Exchange, in a deal worth 379 million euros, or $545.2 million. The listing will take place June 29.

The offer, according to the company, was oversubscribed by 3.6 times, with demand coming from diversified investors worldwide. Ferragamo’s road show kicked off on June 13 and traveled to London, Milan, Boston and New York, ending Thursday.

During the road show in Milan, chairman Ferruccio Ferragamo said the decision to list on the exchange was taken by the family “unanimously, to further develop [the luxury goods house] in the future with continuity and a strong managerial asset,” also in light of the ever-growing number of family members, now totaling 70.

After the IPO, Ferragamo Finanziaria, controlled by the family, will hold 56 percent of Salvatore Ferragamo SpA, and various members of the family and Hong Kong entrepreneur Peter Woo will own 11 and 8 percent of the firm, respectively. There will be no capital increase for the listing.

Ferragamo first talked about going public in 2006, when it recruited Michele Norsa as chief executive officer. The company is capitalizing on its 2010 performance to go for an IPO. Lifted by gains in Asia and at retail, the group returned to the black in 2010, posting sales that hit the $1 billion mark.

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