Photo Courtesy of PradaAccording to Bloomberg Report, two people with knowledge of the company have said that Prada SpA has won approval from the Hong Kong stock exchange for a $2 billion initial public offering.
The Italian luxury brand has reportedly set June 24 as the tentative listing date. The IPO is managed by Intesa Sanpaolo SpA (ISP)'s Banca IMI SpA, Credit Agricole SA's CLSA Asia-Pacific Markets, Goldman Sachs Group Inc. (GS) and UniCredit SpA (UCG).
Prada is the latest European company, including L'Occitane International SA, seeking to sell shares in Hong Kong where IPOs reached a record last year. The listing will allow the company to tap into the luxury good's market astounding growth in Asia. Other companies are also said to be in talks to join the Hong Kong exchange, including Coach Inc. and Samsonite LLC, the makers of bags and luggage.
Mainland China will remain the fastest-growing market for luxury goods in 2011 as sales rise 25 percent to 11.5 billion euros ($16.5 billion), according to consulting company Bain & Co. The company also said that China is set to become the world's third-largest luxury market in five years. In the Asia-Pacific region, Prada's net income has doubled and sales have grown more than 60 percent, with a large growth shown in total income as well.
Chief Executive Officer Patrizio Bertelli, his wife Miuccia Prada, and her family control Prada products which include clothing and accessories sold under the brands of Prada, Miu Miu, Church's and Car Shoes. Prada is said to begin taking orders for stock beginning June 6.