MILAN — Everyone seems to want a piece of Brunello Cucinelli SpA.
This story first appeared in the April 23, 2012 issue of WWD. Subscribe Today.
Taking an unusual step, but one that was hinted at in the prospectus published for its initial public offering, the Italian luxury firm said Friday it will end its road show today and not on April 27, as initially planned, “due to the high number of applications received compared to the number of shares offered.” As reported, Cucinelli’s public offering was at least two times oversubscribed on April 16, the first day of the road show.
The company’s debut on the Milan Stock Exchange is now slated for April 27. Trading was initially expected to begin on May 3.
Kicking off his road show, the namesake entrepreneur said he was “not looking for immediate growth. We must grow in a healthy, gentle and graceful way.” Cucinelli said funds from the listing will help grow the company internationally, taking advantage of the “many opportunities” he sees, and attracting young, international managers. The IPO, he said, is not to “ask for money, but to open to the world, and give continuity and longevity to the company. And I have no plans to buy other brands.”
Cucinelli also underscored how his priority was to continue to produce in Italy, with a high component of craftsmanship and artisanal quality.
Stefano Rangone, in charge of Equity Capital Market at Mediobanca, which is the global coordinator and joint book runner with Bank of America Merrill Lynch, said it was “simplicity and scarcity of the brand that sparked interest in banks and investors. This is a label focused on ready-to-wear and a crystal-clear positioning, which make it absolute luxury. It’s a very rare reality and scarce among publicly traded companies.”
Earlier this month, the company priced its IPO at between 6.75 euros, or $8.87 at current exchange, and 7.75 euros, or $10.20, valuing the company at between 405 million and 465 million euros, or $532.3 million and $611.2 million. Milan-based sources said Friday that the price of shares is expected to be set in the higher-end of the range, given the strong demand and the limited number of shares put on the market. One analyst also said that Cucinelli may favor “investors that have a long-term vision and strategy, which fits with the entrepreneur’s own idea of growth.”
Including a capital increase, the firm is valued at between 459 million and 527 million euros, or $603.3 million and $692.7 million. According to the prospectus, the company aims to raise 151 million euros, or $198.4 million, from the offer. Cucinelli is offering 20.4 million shares, or a 30 percent stake in the company (33 percent with the Greenshoe option).