Prada Group Seen Nearing Dual Listing




  • In Business
  • 2022-08-12 17:24:51Z
  • By WWD
 

MILAN - Prada's already shared plans to explore a second listing in Europe are reportedly getting into action.

The luxury brand's co-chief executive officer Patrizio Bertelli had hinted at the potential move during Prada's Capital Market Day last year, as reported by WWD.

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"We are satisfied with Hong Kong, it was the right choice," Bertelli said at the time, admitting, however, that "we could explore a listing in Europe. That said, we don't feel the need to now, we are OK this way."

According to a Bloomberg report published Friday, the company, which has been publicly listed on the Hong Kong Stock Exchange since 2011, is moving swiftly to turn those vague plans into action and seeking $1 billion from a second listing in Milan, likely taking place in 2023.

Contacted Friday by WWD, Prada had no comment.

The company, which controls the namesake brand as well as Miu Miu and footwear specialist Church's, has reportedly hired Goldman Sachs to work on preliminary preparations. There are currently no dual listings between Milan and Hong Kong in place, meaning there is no template for such a move. In March Prada appointed Goldman Sachs' veteran Andrea Bonini as its new chief financial officer, succeeding Alessandra Cozzani.

Prada raised $2.1 billion in 2011 by listing a 20 percent stake in Hong Kong at a time when luxury juggernauts were rushing to exploit the fastest growing luxury consumer base in China and the Asian region. But it is said to be now looking to diversify its investor base.

Last year Bertelli acknowledged that "certain investors" do not consider channeling their investments in Hong Kong given the political instability there, but, "after all, we [the family] have 81 percent of the capital."

In the first half of 2022 Prada Group sales grew in the double-digits in all regions except for Asia Pacific, where they fell 7 percent. But the region remains a strong source of revenues and growth avenue for the brand, which staged a repeat show of its men's and women's fall 2022 collections in Beijing, the first international luxury player to do such a move this year.

In the six months ended June 30, Prada Group's revenues jumped 22 percent to 1.9 billion euros compared to same period in 2021, with retail sales, which account for 90 percent of group revenue, rising 26 percent to 1.7 billion euros.

The gains came from double-digit increases at all the group's brands, and all the main product categories and geographic regions. Net income nearly doubled to 188 million euros, while the group's net cash position was 179 million euros as of June 30.

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