Italian luxury goods maker Ferragamo, controlled by members of the founding family, will list up to 25% of the family’s stake on the Milan stock exchange, as part of its plans to raise funds for expansion.
The company said that following the IPO, the Ferragamo family holding company will hold a 56% stake in the company, with another 11% held by individual family members. In March, the family sold an 8% stake to the Hong Kong-based Woo family in an attempt to strengthen its market presence in Asia.
Although the listing will dilute family ownership of the Florence, Italy-based company from its current 90%, the family will retain control of the board.
The move is positive for the company, as it plans to use the money to fund further expansion. The listing is expected to raise over €400 million, valuing the company at around €1.76 billion. Ferragamo plans to open 25 new stores worldwide, and will boost its presence in the Asian market.
Through this listing, Ferragamo joins fellow Italian family business Prada, which will also have its IPO this month. Prada’s listing in Hong Kong will value the company at over $15 billion (Continue reading here)
Ferragamo was founded in 1927 by the group’s namesake Salvatore Ferragamo. His wife Wanda took over the company after his death in 1960. She is now the honorary chairman of the group, while son Ferruccio is president of the company. Third-generation James is the product director of the women’s leather division, while the group’s first non-family member Norsa is the chief executive.
Ferragamo reported a 26% rise in its 2010 revenues to €781 million. Its net profits for 2010 also increased to €60.8 million, after a loss of €14.7 million the year before.