Prada to float in HK
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World renowned fashion brand Prada plans a public listing in Hong Kong. |
Italian fashion goods maker Prada will list its shares in Hong Kong, a sign of Asia's growing appetite for designer goods.
"The Prada board, which met today, has decided to launch the process of listing the company on the Hong Kong bourse," the group said in a statement without mentioning a date.
The Italian press said the Hong Kong listing could take place in June or July.
Once listed, Prada will be the first fashion company to be listed on an Asian bourse.
An official with Prada's communication's department, who refused to reveal his name, confirmed that there was a meeting going on Thursday morning Italian local time, but refused to offer further details on the agenda of the meeting.
Analysts estimate that Prada could aim to finance 1.2 billion euros ($1.65 billion) by selling a third of its shares at a multiple of 10 times its projected 2010 core earnings, said the report. And Prada has delayed a flotation three times over the last decade.
The Hong Kong listing could help the company to trim debt of around 1 billion euros ($1.371 billion), and also fund growth in Asia, where Prada expects its sales to overtake those in Eu-rope over the next three years, said a report from Reuters earlier this week.
"Prada's consideration of listing in Hong Kong indicates its increasing focus on the Asian market, which has become a new driving force for the global luxury goods market, especially China," said Lu Xiao, director of Bocconi Fashion and Luxury Management project of Fudan University.
Currently Prada owns 15 stores in China, but it plans to open nearly 30 more by the end of 2012, according to a report from AFP.
Last week, Prada launched its 2011 spring-summer 2011 collection in Beijing, which is the fashion maker's first stride down a catwalk outside of Europe.
"Many luxury fashion brands like Fendi and Channel have already done this (collection show) before. It is a little bit late for Prada to start paying more attention to the Chinese market," said Zhu Mingxia, director of the Cheungkei luxury goods research center at Beijing's University of International Business and Economics.
"Prada's presence in China is still weaker than that of other fashion brands like Channel and Louis Vuitton," said Fudan University's Lu.
Yan Jun, president of Ecole Fashion and Luxury Consulting (Beijing), Thursday told the Global Times that Hong Kong could serve as an ideal financing venue for Prada, given the company's increasing popularity and brand value in China.
Prada would not be the first, as French cosmetics firm L'Occitane also listed on Hong Kong last year.
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