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Moncler’s IPO oversubscr​ibed 12 times

By FashionUnited

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ANALYSIS_ That 30 percent of the stock that Moncler is to sell in the Initial Public Offering (IPO) on December, 16 are very much sought-after. In a matter of days, Moncler has received interest on its shares over twelve

times the number of shares available.

"It's the moment for luxury," said Gianluca Pacini, an analyst at the bank Intesa San Paolo commenting the huge interest that the Moncler’s floatation is gauging. According to Pacini, the main appeal of Moncler lies into its strong business and good earnings growth. The analyst remembered that the company went from 50 million euros in revenues in 2003 to 489 million euros last year, while net earnings came in at 82.4 million euros.


Moncler’s shares subscribed over 12 times

Moncler
has seen how the demand for its shares is worth more than 12 times that amount. The subscriptions will close on December, 11, a source close to the matter quoted by Italian media said on Monday.

Investors are really keen in getting any of the shares to be sold in the largest luxury goods IPO that takes place in Europe in years, as owners of the coveted ski gear maker Moncler seek to raise circa 785 million euros for the 30 percent of the company’s equity.

President Remo Ruffini explains the success of the company he leads arguing that he doesn’t “understand businesses that make everything, because each product is specialized." This specialization has paid off for Moncler since Ruffini took control of Moncler a decade ago, driving sales to increase ten times to reach 489 million euros last year.


Moncler to float December, 6 at circa 8 pounds a share

Moncler - which has been the subject of IPO rumours since 2011 - will float almost 30 percent of its capital on December 16. The brand is currently valued at circa 2 billion pounds with shares priced between 7.20 and 8.40 pounds each.

The company is floating 26.7 percent of its share capital, or 30.7 percent with the Greenshoe option in an IPO that will value the company at between 2.19 billion euros and 2.55 billion euros.

“The offer has been more than covered,” said Stefano Rangone to ‘Businessweek’, an executive from Mediobanca, one of the global coordinators, following rumors that shares have already been oversubscribed 12 times. Ruffini noted though that there are no plans to close the offer in advance.


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