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The actual,1 14 percent comes from new shares that will raise about $270 million after fees for the company. most of the money will be acclimated,1 to accessible,1 more stores or expand existing ones and pay off debt.
Prada had discussed going public several times in the past, with the most contempo,1 attempt delayed after the world financial crisis in 2008 sent markets aerobatics,1.
Investors were also cool to Prada because “there are too abounding,1 IPOs happening at the same time and also the share amount,1 is about,Charming Buterflies Dominate Judith Leiber Lacewin,1 perceived to be absolutely,1 high,” said Andrew Leung, an absolute,1 analyst.
A number of other companies have been planning Hong Kong listings, although several have shelved or adjourned,1 them recently amidst,1 the market's tumble.
Prada is the aboriginal,1 Italian company to go public in Hong Kong. it follows a amount,1 of other adopted,1 companies listing recently in Hong Kong in hopes of cashing in on China's booming abridgement,1. It's also aiming to raise awareness of its cast,1 {among|a allotment,1 of,1} China's growing number of wealthy consumers.
“We are absolute,1 that the greater China arena,1 is going to be the bazaar,1 of the approaching,1,” Bertelli said.
Milan-based Prada sold 423.3 million shares, or a 16.5 percent stake, to accession,1 HK$16.7 billion ($2.1 billion), in its initial public alms,1. The banal,1 was priced at the low end of the offer range.
HONG KONG (AP) – Shares of Italian fashion house Prada SpA were nearly collapsed,1 in their Hong Kong stock market debut Friday, amid blood-warm,1 broker,1 interest in the city's most glamorous IPO of the year.
Prada shares acquired,1 as abundant,1 as 50 cents, or 1.2 percent, to HK$40 in the first hour of trading but closed at $39.60, just,1 10 cents higher than the offering price.
The stock was broadly,1 expected to tank on its admission,1 because of slumping global markets and worries from Hong Kong investors that they would have to pay Italian taxes. but while it didn't bead,1, it also bootless,1 to track gains in the broader Hong Kong market as the Hang Seng Index rebounded nearly 2 percent. The basis,1 is down 5.8 percent over the past three months.
The Prada family, which endemic,1 95 percent of the company above-mentioned,1 to the initial public offering, will accumulation,1 handsomely from the listing. About 62 percent of the shares in the IPO came from absolute,1 stock they owned, reaping them about $1.3 billion afore,1 fees. Another 24 percent came from Italian coffer,1 Intesa Sanpaolo's stake, which owned 5 percent.
By KELVIN CHANAP Business Writer
Prada, which also owns the Miu-Miu, Church's and Car Shoes brands, sold 95 percent of shares to big all-around,1 investors. Hong Kong individual investors got the remaining 5 percent of shares, about half the accepted,1 proportion.
Swiss commodities banker,1 Glencore International and baggage,1 maker Samsonite International S.A. have also listed in Hong Kong this year, while affluence,1 handbag maker Coach, which is already listed in New York, has called,1 Hong Kong for its second listing.
Copyright 2011 The associated Press. all rights aloof,1. this material may not be published, advertisement,1, rewritten or redistributed.
Miuccia Prada, Bertelli's wife and the company's admiral,1 and chief artist,1, was not able,1 to make it to the listing commemoration,1 because she was in Shanghai for a fashion appearance,1, he said.
The company was founded in 1913 by Prada's grandfather, Mario Prada, who started out selling leather bags, trunks and crystal. Today it's accepted,1 for stylish covering,1 handbags and classic dress designs that accept,1 helped it become a symbol of high appearance,1.
Local investors were likely turned off by warnings in Prada's announcement,1 that shareholders could be hit with Italian basic,1 gains tax of 12.5 percent on any profits from selling their shares as well as up to 27 percent withholding tax on assets,1. Hong Kong doesn't tax capital gains or dividends and it doesn't have a dual-taxation agreement with Italy.
“The very aboriginal,1 trades seem to affirm,1 the appraisement,1 was appropriate,1. Signs are actual,1 good,” he said.
Despite the blah,1 performance, Chief Executive Officer Patrizio Bertelli was upbeat at a listing ceremony.