Brunello Cucinelli´s IPO in Milan to raise EUR 530m

Italian luxury clothing company Brunello Cucinelli will debut in Milan this Monday with an initial public offer (IPO), aiming to raise up to 530 million euro valuation for the firm and a handout of up to EUR96 million for its current owners.Cucinelli,

famous for its cashmere sweaters and for accounting self-confessed fans such as Prince William and Demi Moore, said on Friday it will offer shares for between 6.75 and 7.75 euros each, aiming to start trading on the Italian exchange on May 3, reported Reuters.

The range will imply a valuation for the company after the deal of between 18 and 21 times 2012 earnings, while peers trade at 21 to 22 times forward earnings, the source said.

Cucinelli, owned by the entrepreneur of the same name, plans to offer 20.4 million of its shares from April 16 to 27. This means that the IPO will bring to the market a 30 percent stake, or 33 percent if global coordinators BofA Merrill Lynch and Mediobanca fully exercise the "greenshoe" option, published Fox News.

The offer comprises 12.4 million shares offered by current owners, while 8 million new shares will be issued with proceeds used to boost the company's balance sheet.

Cucinelli, based in Italy's Umbria region, posted 2011 net sales of 243 million euros and core earnings of 40 million. The listing values the company at an enterprise value of between 11.3 and 12.8 times core earnings, according to the prospectus.