Valentino recovers its IPO plans after beating 1 billion dollars in FY15 revenue

After closing the year saying that the plans to take the company public wouldn´t be implemented any time soon, Valentino is having second thoughts and wouldn´t rule out an IPO for 2017.

The Italian fashion house has had quite a positive kick of the year as it has just announced that profit for fiscal year 2015 nearly doubled. Valentino also beat its own forecast, surpassing the billion dollar mark in annual revenue.

The strong figures helped the company re-kindle their plans to sell shares in an initial public offering (IPO) as early as next year.

To this regard and according to the fashion company’s CEO, Stefano Sassisaid, an IPO is “still a project” and could happen in 2017.

Valentino studies IPO yet again, although it won´t happen before 2017

In line with the retailer’s last comments on going public, Valentino’s CEO ruled out listing sooner because of recent market declines that have wiped billions off the value of luxury stocks, reports ‘WWD’.

Since October 2015, Mayhoola For Investments SPC, Valentino’s Qatari owner, has been working with Rothschild Bank to explore options including an IPO, as sources familiar with the matter told to Bloomberg back then.

Same sources indicated that Mayhoola For Investments SPC, which acquired the company from Permira Advisers in 2012, may try to sell a 25 percent to 35 percent stake at a price that would value the entire company at as much as 2 billion euros.

Earnings before interest, taxes, depreciation and amortisation reached 180.2 million euros in 2015, well ahead (+48 percent) of the 98.5 million euros registered a year earlier.

Looking ahead, the company foresees revenue to grow at a double-digit speed in 2016, based on Valentino’s aggressive expansion plans to open 25 stores globally – compared to the 130 it currently owns worldwide.