MILAN--Italian notebook maker Moleskine SpA's (MSK.MI) shares
slipped on their first day of trading following its initial public
offering, the first on the Milan bourse in almost a year.
The stock closed 0.87% lower at 2.28 euros, after rising as much
as 3% in early trading. The shares were priced at EUR2.30 in the
IPO.
The benchmark Italian FTSE Mib index Wednesday fell 2.28%,
following a general European trend and on ongoing political
uncertainty in the country.
"Someone expected an even better performance, but this is fair
considering the current market phase," a trader said.
Founded in 1997, Moleskine is most widely known for its
pocket-sized notebooks that emulate those used by writers Ernest
Hemingway and Jack Kerouac.
The IPO is only the third listing on Milan's main stock exchange
since 2011. The other two were Brunello Cucinelli SpA (BC.MI) and
Salvatore Ferragamo SpA (SFER.MI), brands that are well known
outside Italy, which have increasingly relied on foreign revenues
to offset weaker domestic-market performance.
A high foreign growth potential made them appealing IPOs from an
investors' perspective, which is also what supported interest in
Moleskine.
"These companies all have a very diverse worldwide market they
can rely on," eliminating uncertainty related to Italy's political
situation, said Andrew Caldwell, who evaluates private companies,
shares and assets for U.K. consulting firm BDO LLP.
But generally southern European companies are wary of going
public, because of the weak economies and market volatility. By
comparison, a surge in initial public offerings is expected in
northern European stock exchanges in the coming months.
Defying some bankers' fears that raising money would be
difficult, Moleskine's shares drew strong demand during its IPO,
with the offer more than 3.6 times oversubscribed, the company said
in a statement. The notebook maker sold about 106 million shares,
priced at the middle of the proposed range.
In 2012, Moleskine reported an adjusted net profit of EUR19.7
million, a rise of 25% compared with the year earlier. Adjusted
revenue was EUR78 million, 17% higher on year. The company's market
value is around EUR488 million.
About half of the company's sales came from Europe -- with only
10% coming from Italy -- and more than a third came from the
Americas, the company reported.
Write to Manuela Mesco at manuela.mesco@dowjones.com
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