Moncler ready for largest flotation for European luxe

Moncler threw some light Tuesday upon the dubbed largest flotation in the European luxury market this year. Market expects the valuation of the sale to come in at over 2.5 billion euros. The skiwear advanced that it had set

a price range of between 8.75 and 10.2 euros per share, valuing the company at 2.2 billion euros. Despite this valuation being “at the bottom of the range” as a source close to the matter told Reuters, this price will still come below that of 2.4 billion euro the brand is worthy according to a report used to market the deal to investors by Banca IMI. The Italian private bank explained earlier in November that this valuation is based on how much investors are willing to pay for other Italian luxury brands.

Moncler to float

at 8.75-10.2 euros per share

As reports broke Tuesday, Moncler will start trading in the Borsa de Milan at somewhat between 8.75 and 10.2 euros per share. The deal will give the company an estimated free float of just above 26 percent, a source quoted by Reuters which asked to remain anonymous, said.

This reference price gives Moncler a valuation at about 10-12 times expected 2014 earnings before interest, tax, depreciation and amortization (EBITDA). Analysts and market players following the deal have pointed out that the lower suggested price will be somehow in line with luxury trade peers LVMH and Kering.

Further detail of the deal will be published in the prospectus on Thursday, Moncler said in a statement earlier this week, adding it had received approval from the Italian stock market regulator.

By the time being, the actual first day of trading for Moncler stock remained private, although sources close to the company point out that this is likely to happen in the second week of December. Other shares asked by Reuters advanced it will be on the 16th of December.

Last time the brand received so much attention was in 2011, when it cancelled an IPO that valued the company at a half of today´s price and decided instead to sell a 45 percent stake to French investment group Eurazeo for 1.2 billion euros.