Moncler's IPO priced at top of range on high demand

ANALYSIS_ Moncler has priced its initial public offering at the top of the initially suggested orientating range after investors sought more than 31 times the amount of stock offered. The IPO was twelve times oversubscribed in less than three days

since it was launched.

“In the short-term, the company will grow very fast indeed,” Mario Ortelli, an analyst at Sanford C. Bernstein, said in an interview with Bloomberg. With already high margins, Moncler “is a revenue expansion story,” the analyst said.

The value of orders from institutional investors has allegedly exceeded 20 billion euros for shares to come out to the market at 10.20 euros each, the Milan-based company said yesterday in a statement.

The sale values Moncler at 2.55 billion euros after the stock was offered in a range of 8.75 euros to 10.20 euros.

Moncler shares to come in at 8.75-10.20 euros each

Moncler has reportedly received orders worth around 20 billion euros from all over the world for the circa 27 percent of its capital, an anonymous source close to the matter said to Reuters.

"With these numbers it seems to be taken for granted the pricing will be at the top of the range," the source added. The 8.75-10.20 euros price range was set by Moncler two weeks ago.

Eurazeo SA, a French private-equity firm, and Carlyle Group would be the main beneficiaries of the proceeds from Moncler’s IPO. The sale is expected to raise as much as 681 million euros, and there is an option to increase the offering size by 15 percent, Moncler advanced this week.

Moncler is selling a 27 percent stake, or 66.8 million shares, and the sale could raise more than 1 billion dollars and value the company at more than 3 billion dollars. Share trading is due to commence Dec. 16.

Bank of America Corp., Goldman Sachs Group Inc., and Mediobanca SpA are leading the sale in conjunction with other banks such UBS AG, JPMorgan Chase & Co., and Nomura Holdings Inc. Lazard Ltd. is advising Moncler on the IPO.