Famous luxury fashion house Prada of Italy will let down the wing on the stock exchange of Hong Kong on June 24, in a fantastic offer to raise up to $ 2 billion. High end fashion company is taking new steps to exploit the massive Chinese market, family-owned giant is planning to start a book-building for institutional investors on June 6, and began its initial public offering eight days later.
In a transaction on June 17, Dow Jones Newswires quoted the term sheet says that the purpose of the company to expand its sales network, increasing floor space, pay bank loans and supplement working capital.
A spokesperson for Prada in Hong Kong, told AFP he had not received an official statement from headquarters Milan and could not confirm details about the IPO. The company reportedly received approval from the Hong Kong market regulators last week for a plan to sell 20 percent stake. This step will value the group up to $ 11.3 billion.
The group, which includes the Prada, Miu Miu, Church's and Car Shoe brands is 95 percent controlled by the Prada family and executives. Prada announced in January it would make its first public listing on the Hong Kong bourse in a sign of Asia's growing appetite for designer goods, especially to capitalise on the cash-rich mainland Chinese markets. China is the world's fastest-growing market for luxury goods.
It is forecast to be the world's top buyer of products such as cosmetics, handbags, watches, shoes and clothes by 2015, according to consultancy PriceWaterhouseCoopers. Prada will join a slew of other luxury fashion brands also eyeing a listing in Hong Kong, including US upscale handbag maker Coach and luggage maker Samsonite.
Prada's listing plan comes as second-hand luxury handbag retailer Milan Station made a successful debut in Hong Kong Monday, with its shares soaring as much as 77 percent after its IPO was oversubscribed by more than 2,100 times.