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OVS debuts on Milan Stock Exchange at 4.10 euros a share

By Angela Gonzalez-Rodriguez

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Business

OVS – Italy’s largest fashion retailer – debuted Monday on Milan Stock Exchange, becoming the first fashion initial public offering in the country since that of Moncler in December 2013. First day of trading was not the success anticipated by the company, as many in the trade have highlighted.

Over the offer period, requests for OVS totalled 226.8 million shares, about twice the amount offered. Thus, 5,233 applicants have been assigned a total of 111.9 million shares, 101.8 million of those were allocated to institutional investors.

The proceeds of the transaction was over 414 million euro. Based on the offer price of 4.10 euro per share capitalisation OVS started from 930.7 million, highlighted ‘La Repubblica’.

OVS shares set to a rocky trading debut

As recalled by Reuters, investors had been guided to the price last week, ahead of the books closing. It is worth noting that the IPO has been priced at the bottom of a 4.00 to 5.40 euros a share original range and revised price range of 4.10-4.40 euros a share.

Besides, the trading debut has not been an easy one, with the stock listed in the lower price range indicated in the IPO (4.1 euro from a range between 4 and 5.4 euro) and trading most of the day in negative territory, only to finish at 4.10 euro apiece.

Shares of OVS hit a low of 3,932 euro and a high of 4,174 euro Monday.

In spite of the rocky trading debut, CEO Stefano Beraldo said he was "very happy", pointing out that in recent years, "They were many investors who have said 'but why not go abroad?'” But "Italy - clarifies - remains a huge market, the third largest in Europe, with still large margins. And yet here we have grown."

"At the end of this path, this company, has managed to do what it did with its own means, even with a little less. I look at my management, as I say these things, because we were the heroes: resist despite the resistance improve. The company found capital to finance growth: shares were bought by British, American, European and Italian investors. I am satisfied".

"Our goal is to grow in a market that may or may not expand... so we will focus on increasing our market share," he said at an event to mark the company's debut.

Likewise, OVS’ CEO said they could boost their market share to nearly 9 percent in the next five years from current 6.3 percent.

OVS