According to WWD, Prada
SpA announced Wednesday that it is set to launch an initial public offering
(IPO) in 2008.
Depending on market conditions, a spokesman for the
Italian luxury goods group said the listing on the Milan Stock Exchange
is planned for next year, but there had been no decision on how much of
the company would be floated. A source close to the deal suggested the
move would likely be made in the second half, and that a 30-40%
would go public.
Industry sources valued Prada at 4 billion to 5 billion euros, or $5.76 billion to $7.2 billion at current exchange.
The company owns
the Prada, Miu Miu, Car Shoe and Church’s brands. Prada has pulled the plug on its IPO
three times, citing unfavorable market conditions. But the Prada
spokesman said the company was in "perfect condition" to list next
year. He added
that Prada sales were in line to grow 20% in 2007.
A host of Italian luxury goods
brands have gone public since last summer. Aeffe SpA, which controls the
Alberta Ferretti, Moschino and Pollini brands, and produces collections
for Jean Paul Gaultier, listed on the Milan Stock Exchange STAR segment
for small companies in July. Jeweler Damiani SpA and luggage maker
Piquadro SpA followed last month. All three are trading below their
initial IPO prices.
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