LONDON — Shares in Jimmy Choo plc closed up 2.9 percent, to 1.44 pounds, or $2.31, on Friday, the first day of conditional trading on the London Stock Exchange.

This story first appeared in the October 20, 2014 issue of WWD. Subscribe Today.

Earlier that day, the company set its share price at 1.40 pounds, or $2.24, the low end of its proposed range, in what has become an increasingly cold climate for luxury goods.

Based on the offer price, the company’s market capitalization as of Friday was 545.6 million pounds, or $873.6 million. Last month, industry sources believed the brand could launch with a market capitalization as high as 700 million pounds, or $1.12 billion.

All figures have been converted at current exchange.

Conditional dealings in the shares began Friday, under the ticker CHOO. The company’s official IPO is set for Oct. 22 on the London Stock Exchange.

The offer price falls at the lower end of the original price range, which ran from 1.40 pounds to 1.80 pounds, or $2.25 to $2.90, respectively.

Luca Solca, managing director at Exane BNP Paribas, said there are several factors at play with regard to the lower-than-anticipated pricing. “The stock market, in general, seems under pressure. Luxury goods, in particular, are out of favor, as growth in [the second half] continues to be moderate, and no rebound is in sight. Jimmy Choo is strongly identified with footwear, and one could have doubts about its ability to branch out into other categories and sustain growth longer term, especially in a more difficult and competitive luxury environment,” he said.

It was also a particularly tough week to set a share price, especially in the luxury-goods space. Last Wednesday, stock markets around the globe were rattled by a range of worries, from slower consumer spending and weak economic outlooks to the threats of infectious disease and geopolitical clashes.

The previous day, Burberry warned of “the more difficult external environment” going forward, despite an impressive set of first-half results, while Mulberry issued yet another profit warning, admitting it was blindsided by a slowdown in tourist traffic in London and a decline in wholesale sales worldwide. LVMH Moët Hennessy Louis Vuitton saw its watch business take a hit from more cautious consumer spending, while cognac sales dived because of weaker consumption in China.

In Europe, markets rebounded on Friday morning, but the underlying threats to the luxury business remain. The appetite for IPOs is also uncertain: While Alibaba made a spectacular debut, that of German e-tailer Zalando fizzled.

Jimmy Choo’s offer comprises 100,923,674 shares, representing 25.9 percent of the company’s share capital. The company has 389,737,588 shares in issue. Gross proceeds of 141 million pounds, or $225.8 million, from the IPO will go to JAB Luxury GmbH, Jimmy Choo’s parent, which also owns Belstaff and Bally (for more on Bally, see page 7).

JAB Luxury will hold 70.2 percent of Choo’s capital going forward, while the directors and senior managers of the brand will hold 2 percent.

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