Floats in fashion: Maje and Sandro owner SMCP plans a €2.2bn IPO in Paris

 
Lucy White
SMCP's brands have stores in 36 countries, including some of London's prime locations

The company behind French fashion labels Sandro, Maje and Claudie Pierlot is planning a float on the Euronext Paris, valuing the company at up to €2.2bn.

SMCP, which is majority owned by Chinese textiles giant Shandong Ruyi, is aiming to raise net proceeds of €121m to reduce its debt and pursue growth.

It will price its shares between €20 and €25 apiece, with trading due to begin on 24 October, and the float will also allow private equity giant KKR and members of SMCP's management to sell down their stake.

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“This IPO marks an important milestone in the development of SMCP,” said the company's chief executive Daniel Lalonde.

“Our unique business model that combines the codes of luxury and fast-fashion, the international reputation of our three Parisian brands and our ability to generate strong profitable growth will drive the group's success in the years to come.”

Shandong Ruyi will also use the proceeds from the sale to buy out the Chinese government's stake in its Yinchuan Ruyi factory.

SMCP's brands have stores in some of London's prime locations such as Canary Wharf, Bond Street and Covent Garden.

They have a presence across 36 countries, and in the last financial year sales grew 16.4 per cent to reach €786m.

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