HONG KONG — Prada has narrowed its initial public offering price range to come in on the lower end of its initial guidance, according to a person familiar with the situation.
This story first appeared in the June 17, 2011 issue of WWD. Subscribe Today.
The fashion house is now pricing its shares between 39.50 Hong Kong dollars and 42.25 Hong Kong dollars, or $5.07 to $5.24, per share, according to the source. Priced on the top of that new range, the company stands to raise a maximum of $2.3 billion. Earlier indications were that it stood to generate as much as $2.6 billion.
A Prada spokesman declined to comment Thursday.
That new lower range values the company between 101.07 billion Hong Kong dollars and 108.11 billion Hong Kong dollars, or $12.98 billion to $13.88 billion.
Prada’s initial price guidance ranged from 36.50 Hong Kong dollars to 48 Hong Kong dollars, or $4.68 to $6.16, a share. Had the shares fetched the upper part of that preliminary range, the company would have been valued at about $15.8 billion.
As reported, the institutional demand for shares appears to be going well, but retail investors in Hong Kong have not been as enthusiastic about the offer. A source said offers from New York, where the Prada road show is taking place this week, were strong.
The final price of the offer is expected to be determined today and Prada shares are expected to start trading June 24 on the Hong Kong stock exchange.