Prada mulls a Hong Kong listing launch

 
City A.M. Reporter
ITALIAN fashion house Prada is studying an initial public offering (IPO) in Hong Kong for the first half of 2011.

Prada, which has scrapped an IPO four times in the past ten years, may raise more money through a primary listing in Hong Kong than in Milan because individual investors are more active in Asia, according to experts.

Prada, which owns top-selling brands Miu Miu and Church’s, may hire banks as soon as next month, a source told Bloomberg.

A Prada spokesman said the Prada company is continuing to monitor market conditions.

Prada is controlled by chief exexcutive Patrizio Bertelli, his wife Miuccia Prada and her family.

The company ditched plans to list in 2008 because of adverse market conditions. Prada had hired Intesa Sanpaolo SpA, UniCredit SpA and Goldman Sachs Group to manage the offering at the time. Prada may fetch a valuation in excess of Louis Vuitton Moet Hennessy SA’s trading multiples, sources told Bloomberg.

The world’s largest maker of luxury goods has an enterprise value of 11.65 times 2010 earnings before interest, tax, depreciation and amortisation.

Prada’s Ebitda more than doubled to €225.2m (£197.3m) in the six months to 31 July.

Revenue climbed 29 per cent to €936.5m, led by a 47 per cent gain in Asia. Prada’s debt was €485m at the end of 2009, the company said in March.

Prada was founded by head designer Miuccia Prada’s grandfather Mario Prada in 1913.

FAST FACTS | PRADA

The company was founded in Milan in 1913.
It still operates from its first outlet in Milan’s 19th-century Galleria shopping.
Prada also owns the Miu Miu, Car Shoe and Church’s brands.