Prada Woos HK Fashion and Financial Markets with Debut Fashion Show


Posted on June 9, 2011 at 5:06 PM

Prada in preparation for it’s Hong Kong IPO gave the people of Hong Kong a taste of what their investments would be going towards in a high-end fashion show on Monday.  This event became a hot commodity amongst the people of Hong Kong and seats for the show became relatively exclusive giving it that extra high-end fashion status that draws people in.  The interest in the fashion show only further pushed the projected success of the company’s upcoming IPO.  Retail investors are extremely excited for the IPO and have even requested to have their shares in paper, rather than electronically, so that they can proudly display them on the wall.  That being said, Prada has made a decision to lower the retail tranche in efforts to prevent institutional investors from limited availability of shares, which commonly occurs with fashion companies.  The retail tranche will begin at 10% and eventually be raised to 35% once it is more than 100 times covered.  Another interesting decision Prada has made was declared last Friday, stating that if investors planning to buy the IPO choose to sell their shares in the future they might be responsible to pay Italian capital gains tax, assuming a profit is made.  Prada is offering 16.5% of its enlarged share capital (423.3 million shares), of which only 14% are new.  Which means they will raise no more than $365 million from the listing, granted that will still be a great success towards the company’s plan to expand its self-operated stores by almost 30%.  Shares will be priced between HK$36.50 to HK$48.  The final decision on pricing will occur after June 16th (the close of New York trading), as the trading debut is set to happen on June 24th.  The joint bookrunners for this IPO are CLSA and Goldman Sachs with Italian banks Intensa Sanpaolo and Uni Credit.

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