http://www.straitstimes.com/Money/St...ry_587471.html

Oct 7, 2010

Prada studying Hong Kong IPO early next year


A woman looking at the window display of a Prada SpA store in Hong Kong. Prada, which also owns the Miu Miu brand, has opened new stores in Asia. -- PHOTO: BLOOMBERG

MILAN: Italian fashion house Prada is considering an initial public offering (IPO) in Hong Kong next year, depending on market conditions, a company spokesman said yesterday.

'Hong Kong is among the markets we are considering, but it is not the only one,' the spokesman said.

Prada, which has scrapped four previous IPO attempts in the past 10 years, had said in June it was monitoring markets for a possible listing.

'2011 is a possible timeframe for listing, but it is still open. A decision will be made depending on market conditions,' the spokesman said.

Prada owns top-selling brands Miu Miu and Church's. It reported in September first-half sales of €936.5 million (S$1.7 billion), up 29 per cent, helped by growth in Europe, the United States and Asia.

Prada might raise more money having a primary listing in Hong Kong than in Milan as individual investors are more active in Asia, said three people familiar with the situation. They declined to be identified because the talks are private.

Prada may hire banks as soon as next month, one of the people said.

The Milan-based company's sales may reach €2 billion this year, while earnings before interest, tax, depreciation and amortisation may be between €450 million and €500 million.

Prada will probably make a final decision on whether to proceed with an IPO before the year-end, the people said.

'It's starting to look like the right moment to do it,' said Mr Armando Branchini, vice-president of Milan-based consulting firm InterCorporate. 'The conditions are there for an IPO now, both externally and at Prada.'

Prada has cut debt and opened new stores in Asia as the luxury goods industry rebounds from its worst year. French perfume-maker L'Occitane International SA sold stock in Hong Kong in May to take advantage of demand for IPOs in Asia.

Founded by head designer Miuccia Prada's grandfather Mario Prada in 1913, Prada still operates its first outlet in Milan's 19th-century Galleria shopping arcade.

Meanwhile, Russia's No. 2 oil firm Lukoil may list existing shares in Hong Kong or Singapore as early as next year, its deputy chief executive officer Leonid Fedun said in Moscow yesterday.

'We plan a debut on one of the Asian bourses. It will be either Hong Kong or Singapore,' he said.

'The more markets, the more liquidity, the more money to shareholders,' he told reporters.

BLOOMBERG, REUTERS