Salvatore Ferragamo SpA priced its forthcoming initial public offering at EUR9.00 per share, valuing the company at EUR1.51 billion, in what marks a successful showing for the Italian fashion house's market debut amid broader weakness for Italian stock listings.

Ferragamo received orders for 3.6 times the offer, the company said. The final price is close to the middle of Ferragamo's original range.

The long-awaited market debut of 25% of the Florence-based luxury goods company, which is famous for custom-making the shoes of celebrities like Audrey Hepburn and Marilyn Monroe, is scheduled for June 29.

The mid-range pricing comes as good news for Italy's battered stock market, which in the last month has seen the cancellation of the listings of auto-parts distributor Rhiag and another luxury company Moncler.

Fellow Italian fashion house Prada SpA (1913.HK) has fared less well in its recent IPO in Hong Kong last week; the company priced at HK$39.50 per share.

According to bankers at Mediobanca (MB.MI)--that together with J.P. Morgan Chase & Co. (JPM) and Intesa Sanpaolo (ISP.MI) unit Banca IMI is handling the sale--more than 260 investors showed interest in the designer handbag and shoe maker at its road show in Asia last week.

At an around mid-point (EUR9.00), Ferragamo's equity would be valued at EUR1.515 billion, for an implied 2011 p/e of 20.1x and EV/2011 Ebitda of 11.9x, according to Dow Jones Investment Banker estimates. That would represent a premium to both the valuation of shoemaker Tod's (TOD.MI) and Swiss luxury conglomerate Richemont (CFR.VX) valuation, but a slight discount vis-a-vis British fashion house Burberry (BRBY.LN). On June 14, DJIB noted that as market volatility persists, investors should buy at fair value around mid-point, particularly given a typical 20% discount to be offered at IPO.

Ferragamo announced an IPO price range at between EUR8 and EUR10.50 in May, and said that it would have sold more than 38 million shares on the market.

After the listing the Ferragamo family will retain the majority of the fashion house. "The family is very, very interested in the company and wants to continue being involved," Chairman Ferruccio Ferragamo said last week. He added that his son James and niece Angelica are already working in the company.

Company Web site: http://group.ferragamo.com

-By Sabrina Cohen, Dow Jones Newswires; +390258219906; sabrina.cohen@dowjones.com

--Alessandro Pasetti contributed to this article.

Tod`s (BIT:TOD)
Historical Stock Chart
From Nov 2024 to Dec 2024 Click Here for more Tod`s Charts.
Tod`s (BIT:TOD)
Historical Stock Chart
From Dec 2023 to Dec 2024 Click Here for more Tod`s Charts.