Prada eyeing Hong Kong listing

Prada is considering a Hong Kong public listing, as it believes the company may have a higher valuation in Asia. Prada attempted listing 4 times in the past 10 years, all of which were abandoned. For many foreign luxury companies Hong Kong is an interesting

place to be listed, as the market is more favourable and investors more active. Prada is controlled by Miuccia Prada, the designer, and Patrizio Bertelli, the chief executive, who has overseen expansion over 30 years from a store in Milan to one of the biggest independent fashion groups.

Sales at the group, which includes brands Miu Miu and Church’s as well as the eponymous fashion house, could reach €3bn by 2014 as its retail expansion into emerging markets accelerates, said those familiar with the situation. Sales this year are expected to reach €2bn.

Amsterdam-based Prada Holding, through which Mr Bertelli, Ms Prada and siblings control about 95 per cent of Prada SpA, has net debts totalling €600m. Intesa Sanpaolo, the Italian bank, controls the remaining 5 per cent. Prada SpA has debt of about €450m.

A share offer, including the issue of new shares alongside existing stock, would allow the owners to pay down some of the debt in the holding company.

Prada reported a surge in sales across all markets in the first half to July 31 after investing heavily in directly owned stores. Asian sales rose 47 per cent. Group revenues rose 25 per cent to €936.5m at constant exchange rates with sales increasing across all markets.

It made earnings before tax of €225.2m, more than double the first half of 2009. Net profit was €103m for the period.

Image: Prada AW10
Source: FT