Continuing a strong comeback in European listings this year, luxury sneaker manufacturer Golden Goose SpA intends to launch an initial public offering in Milan as early as this week, according to sources familiar with the situation.
According to persons who asked not to be named because the information is confidential, Golden Goose may announce its plan to go public as soon as this week in response to encouraging comments from potential investors.
Investors are expected to value Golden Goose at almost 11 times this year’s estimated earnings, according to the pitch, which compares the shoemaker to puffy jacket manufacturer Moncler SpA. Based on Bloomberg projections, the company’s valuation would be approximately € 3 billion (US $ 3.3 billion) when net debt is included.
According to the people, discussions are still ongoing, and the offering’s specifics, such as its size and timing, may change. An official from the business and its proprietor, the private equity group Permira, declined to provide a statement.
Encouraged by the stock market’s surge to all-time highs, Golden Goose would follow Spanish cosmetics business Puig Brands SA and buyout behemoth CVC Capital Partners Plc in pursuing their intentions for a European listing. Through IPOs, companies in the area have raised US $ 12.4 billion this year, more than twice as much as they did during the same period last year.
Nevertheless, the corporation is conducting market research at a time when the luxury industry is contracting. Due to weak Chinese demand, Kering SA said last month that sales of its Gucci brand dropped 18 per cent in the first quarter. In the first quarter, larger rival LVMH recorded 2 per cent organic increase in sales of fashion and leather items, compared to 18 per cent growth the previous year.
