PARIS — SMCP, the owner of French contemporary brands Sandro, Maje and Claudie Pierlot, has set the price for its listing on the French stock market at 22 euros a share, giving the company a market capitalization of around 1.7 billion euros.
Shares of the company, which is controlled by Chinese textile conglomerate Shandong Ruyi Group, are to start trading on Oct. 20 in the second largest listing on the Paris stock market this year.
“SMCP’s IPO signifies a new milestone in the company’s development. Shandong Ruyi is extremely proud to be working with such a remarkable team,” said Yafu Qiu, chairman of Shandong Ruyi Group, which controls the company.
Shandong Ruyi Group had bought the French apparel group a year ago from private equity firm KKR in a deal estimated at 1.3 billion euros, including debt.
The Chinese group said it would reduce its stake from 82 percent, but retain a majority of the company.
Financial details of the IPO released Thursday indicate it has joined forces with Yinchuan Weixin Industry Funds Ltd. Partnership, which is indirectly and majority owned by investment funds of the Chinese government. The parties together will retain a 55.4 percent in SMCP.
Sandro founder and artistic director Evelyne Chétrite and her sister Judith Milgrom, founder and artistic director of Maje, remain shareholders in the group, owning 2.2 percent and 2 percent stakes, respectively.
“We are very pleased with the success of this new IPO,” said SMCP chief executive officer Daniel Lalonde, who will have a 0.4 percent stake in the newly listed company.
Proceeds from the Euronext listing will be used to fuel international expansion and reduce debt.
For More From WWD: