Prada Seeks $1 Billion Valuation In Milan Listing

Italian luxury group Prada wants to obtain a valuation of at least $1 billion from a new listing in Milan.

The Milanese maker of luxury clothing, fragrances, and accessories is working with Goldman Sachs Group for preliminary preparations.

The offering is likely to take place next year, with the company valued at $14,8 billion looking to raise funds by selling new shares in Milan, people familiar with the matter said for Bloomberg.

Prada Also Hopes To Diversify Its Investors Base

Prada raised $2.1 billion in 2011 by listing a 20 percent stake in Hong Kong when large luxury brands were pivoting to the Asian market and it is now looking to diversify its investor base. A dual listing in Europe would help the Hong Kong-listed luxury group broaden its investor base, as some funds can only invest in European or US stocks.

Prada chairman Paolo Zannoni said last month that a secondary listing in Milan is a possibility but not a priority for Prada, adding that no decision had been made.

Co-CEO Miuccia Prada and her husband, Italian businessman Patrizio Bertelli, are unlikely to cut their stake in any deal. The two have an 80% stake in the company.

Prada and his advisers are working through the complexities of the Hong Kong-Milan dual listing and no final decisions on its timing or size have been made.

Prada and Goldman Sachs declined to comment.

According to Business of Fashion, in a European market devoid of new share sales due to heightened inflation, rising interest rates, and the looming risk of recession, some luxury brands are bucking the trend. For example, sports-car maker Porsche is working on an initial public offering that could be one of Europe’s largest ever.

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