Prada prices shares at low end
Source: Agencies |
June 18, 2011, Saturday
|
Print Edition
Print Edition
ITALIAN fashion house Prada is selling shares near the low end of the price range in its planned IPO, a person familiar with the deal said yesterday, as investors flee slumping stock markets and worry about paying Italian taxes.
The company is selling shares at HK$39.50 (US$5.07) apiece, the anonymous source said.
The company said last Sunday that the shares in the initial public offering would be priced from HK$36.50 to HK$48. Prada is selling 423.3 million shares, so it would raise HK$16.7 billion (US$2.1 billion), although that's less than the HK$20.3 billion it could have raised if it was able to price the shares at the top of the range.
Foreign companies have been flocking to Hong Kong to go public in hopes of profiting from China's strong economy. They also want to raise brand awareness with China's consumers.
But a recent slump in global stock markets, driven by fears about the world economy and Europe's debt crisis, is putting investors off stocks.
In Prada's case, retail investors, who play a big part in IPOs, may also be turned off by the possibility they'll have to pay Italian taxes.
The company is selling shares at HK$39.50 (US$5.07) apiece, the anonymous source said.
The company said last Sunday that the shares in the initial public offering would be priced from HK$36.50 to HK$48. Prada is selling 423.3 million shares, so it would raise HK$16.7 billion (US$2.1 billion), although that's less than the HK$20.3 billion it could have raised if it was able to price the shares at the top of the range.
Foreign companies have been flocking to Hong Kong to go public in hopes of profiting from China's strong economy. They also want to raise brand awareness with China's consumers.
But a recent slump in global stock markets, driven by fears about the world economy and Europe's debt crisis, is putting investors off stocks.
In Prada's case, retail investors, who play a big part in IPOs, may also be turned off by the possibility they'll have to pay Italian taxes.
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