According to Bloomberg, the IPO price of €9.75 per share was set by Golden Goose Group SpA, a company well-known for its high-end sneakers. This price falls close to the lower end of the expected range of €9.50 to €10.50. At the anticipated price points, demand was significant and exceeded expectations, prompting this action.
The initial public offering (IPO) can generate up to €595.7 million ($639 million) if all 61.1 million shares are subscribed. According to Bloomberg’s estimations, this price would put Golden Goose’s market worth at around €1.7 billion.
With the June 21st start of trading of Golden Goose shares, Milan will have its largest initial public offering (IPO) since May of last year’s €599 million offering by Lottomatica SpA.
As previously announced, Golden Goose plans to sell around 10.5 million shares during this IPO, while Permira, the majority owner, intends to unload 43.6 million existing shares. With a commitment to become a cornerstone investor, Invesco Advisers Inc. will acquire a €100 million share at the final selling price.
Nevertheless, the IPO process occurred during a difficult period for European markets, which was made worse by the current political unrest in France. In light of this, the MSCI Europe luxury index has been down 2.8% so far in June, with prominent luxury firms like LVMH, Moncler SpA, and Burberry Group Plc seeing significant drops in their stock prices.
Reducing its debt load is Golden Goose’s primary objective with the IPO money. The company has lofty long-term goals, with net revenues expected to reach over €1 billion by 2029, up significantly from €587 million in 2018.
Notable financial organizations such as UBS Group AG, Mediobanca SpA, Bank of America Corp., JPMorgan Chase & Co., and JPMorgan Chase & Co. are serving as co-arrangers for this landmark transaction.
Investor trust in Golden Goose is highlighted by the company’s IPO, which occurs at a critical juncture in the midst of a highly unpredictable market. Everyone is watching the high-end sneaker brand’s initial public offering (IPO) on the Milan Stock Exchange closely because it could shed light on the changing dynamics of the luxury goods industry and investor mood in Europe.
