Tags: Prada | File | IPO | Aims | 10.7 Billion | Value | hong kong

Prada Said to File for Hong Kong IPO, Aims for $10.7 Billion Value

Thursday, 31 Mar 2011 02:32 PM

Prada SpA, the Italian fashion house known for its triangular logo, submitted an application to the Hong Kong exchange to hold an initial public offering in the city by July, said two people familiar with the company.

The planned sale may give the maker of Miu Miu bags and Church’s shoes a valuation of about $10.7 billion excluding debt, said one of the people, who declined to be identified because the matter is private. Prada made the IPO filing yesterday, the people said.

Prada, based in Milan, follows European brand-name companies including L’Occitane International SA in selling shares in Hong Kong, where IPOs reached a record last year. By listing in Hong Kong, the company will tap into local funds and individual investors who are betting on the luxury goods industry’s growth in the region.

Intesa Sanpaolo SpA, Credit Agricole SA’s CLSA Asia-Pacific Markets, Goldman Sachs Group Inc. and UniCredit SpA are managing the IPO. Sally Kwong, a Prada spokeswoman in Hong Kong, declined to comment.

This is the fifth time in the past decade that Prada has attempted to sell shares. The company’s profit more than doubled last year on growth in the Asia-Pacific region.

Net income rose to a record 250.8 million euros ($355 million) from 100.2 million euros in 2009, Prada said in a statement on March 28. Revenue increased 31 percent to 2.05 billion euros, with growth of 63 percent in Asia, almost 30 percent in the U.S. and 20 percent in Europe, the company said.

Net Debt Cut

Prada cut net debt to 408.6 million euros from 485.3 million euros in the financial year ending Jan. 31, the company said.

L’Occitane raised HK$6.1 billion ($783 million) from its Hong Kong IPO in May last year. That included proceeds from the sale of overallotment shares. Samsonite LLC, the U.S. luggage maker owned by London-based CVC Capital Partners Ltd., plans to raise about $1 billion in a Hong Kong IPO in the second or third quarter, people with knowledge of the matter said in February.

Prada, which was founded by head designer Miuccia Prada’s grandfather Mario Prada in 1913, still operates its first outlet in Milan’s 19th-century Galleria shopping arcade.

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