Fashion: Prada plans a $2.6bn HK float

7th June 2011

BBC News reported that the privately owned company wants to sell 423.3 million shares to investors in a range of 36.50 to 48 Hong Kong dollars.

Prada would be the first Italian company to list in Hong Kong, as it seeks to profit from China's hunger for luxury goods.

The company, which also owns Miu Miu and Church's Shoes, expects to open 70 more stores in Asia by 2014, of which 30 will be in China.

Prada, said it also hopes to expand in the Middle East, Russia and Brazil.

The company is run by the husband and wife team Patrizio Bertelli and Miuccia Prada, the founder's granddaughter.

UK luxury clothes brand Burberry has also expressed interest in listing shares in Hong Kong.

The Wall Street Journal reports that Prada hope that a Hong Kong listing will raise their profile among China's increasingly wealthy consumers, as well as being an effective way to raise funds for expansion.

Over the next decade, China is expected to become the world's largest market for luxury goods, worth 74bn euros ($107bn), according to a recent report by Asia-focused research firm CLSA.

Luxury handbags, clothing, shoes, watches and jewellery are the most favoured ways for the Chinese to display their wealth, the report adds.

The price of the shares will be set on 17th June, ahead of the first day's trading on 24 June.

The company stock code will be "1913" – the year it was founded.

This year has been the year of the luxury brand, so what company should investors be eyeing next? Read more here.

See also: Nouveau riche in emerging markets fuel demand for luxury brands

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