Saturday, January 29, 2011
By Jody Marich
One of my daily reads is the Telegraph's fashion section. Today I came across something I found really interesting that could effect the fashion world and maybe my bank account if I am lucky enough to buy any stock....
Prada is planning to go public for the first time in their 98 year existence. The fashion empire is planning to "float" on the Hong Kong stock exchange. It is the fourth attempt from the company, and hopefully a successful one.
According to the Telegraph, Prada is in debt of around £880 million. Mrs. Miuccia Prada and her husband Patrizio Bertelli, the company chief executive, are looking to sell part of their 95% stake to help pay off the enormous debt and increase expansion. Prada's overall estimated worth is around £5.2 billion. This move will be the biggest European Fashion brand to hit the Hong Kong market in over a decade and Prada will be the first Italian desgin company to be listed in the Hong Kong market.
The global expansion of Prada has led to a significant increase in sales and profit. “Strengthened by these results and confident in the future development of the group, we can now face the coming challenges with serenity and seize the best opportunities offered by the international capital markets” Bertlli said in a statement.
|photo from Telegraph.co.uk|
The initial public offering would help in the international expansion of the brand. With nine stores planned to open in the next 12 months, this new embark on the stock market could greatly reduce debts while increasing money for expansion.