Prada SpA is reportedly interviewing advisors for an initial public
offering that could value that company as high as $5.6 billion, making
it the biggest luxury goods company in the world. Many investors are
carefully watching the situation as Prada could become yet another hot
IPO.
"Prada has cleaned up its balance sheet and is doing very
well," said Armando Branchini, vice president of Intercorporate SpA in
Milan, a consulting company that specializes in the luxury market.
"Prospects are also good for the industry."
This isn't the first
time Prada considered an IPO either. The first time the company
considered an IPO was in 2001 when analysts estimated the company's
value at closer to $10 billion; however, the September 11th attacks
canceled those plans. Meanwhile, the company's June 2002 plans were
also thrown off by plunging stock markets.
Prada continues to
tread carefully, according to a company spokesperson, "We will look
into the IPO process, but nothing has been decided yet. We are under no
pressure to go."
Meanwhile, investor appetite for fashion companies remains extremely strong with companies like
Ralph Lauren
(NYSE:RL) performing extremely well. Now investors will just have to
wait for the company to file its F-1 with the SEC before it can be
traded as an ADR in the United States.
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