The Strategist

Valentino Goes for IPO

10/09/2015 - 15:33

Qatari owners of the Italian fashion house Valentino Fashion Group SpA are considering an initial public offering (IPO) of the bags manufacturer’s shares for $ 3000, Bloomberg reported, citing sources.

Gabriele Basilico
Gabriele Basilico
Mayhoola For Investments SPC’s investment company is working on a potential IPO with Rothschild. According to the agency, the company can pre-assess Valentino in amount of 2 billion euros (about $ 2.72 billion).

The fashion house Valentino said in a statement that the company is working with financial advisers and exploring options, one of which is becoming a public company.

Mayhoola can sell about 25-35% of the fashion house on the stock exchange in the first half of 2016, sources told Bloomberg. However, the decision has not be taken at the moment, the agency said.
The negotiations are at an early stage, and Mayhoola may decide not to sell the business or sell it to one buyer, the sources noted.

Mayhoola bought Valentino from a private investment company Permira Advisers for 700 million euros in 2012. The fashion house was established in 1960 by designer Valentino Garavani and his business partner Giancarlo Dzhiammetti.

According to the forecast of the fashion house, its revenues in 2015 could grow by about 1 billion euros compared with 664 million euros in 2014.

Earlier this year, Mayhoola announced its intention to purchase 30.7% of the Turkish distributor of fashion brands, including Dolce & Gabbana and Christian Dior. Mayhoola also owns a stake in the British manufacturer of bags Anya Hindmarch.

According to Bloomberg, the largest IPO in the sphere of garments for the past 10 years has been Italian fashion house Prada SpA in 2010, when the company raised approximately $ 2.5 billion on the stock exchange in Hong Kong.

Mayhoola and Rothschild’s representatives declined to comment.