Prada, the maker of Miu Miu dresses and Church’s shoes, is planning to sell 16.5 per cent of its business – or 423.28million shares – valuing the group at more than £7.5billion.
It is holding meetings with Asian investors to gauge interest in the deal and shares are likely to start trading on the Hong Kong stock exchange on June 24.
The valuation placed on the business helped rivals in the luxury goods sector. Shares in Burberry, which is also considering a float on the Hong Kong Stock Exchange and is valued at £5.6billion, gained xxxp to xxxp.
Prada, which has shelved plans to go public three times in the past decade, is likely to use the proceeds to fuel its expansion in Asia, where China is leading a boom in demand for luxury goods.
Aberdeen Asset Management Asia said: “Luxury goods companies have got visible growth for the next 20 years.
Luxury goods companies have got visible growth for the next 20 years
“There are high barriers to entry, as you can’t go out and create a luxury brand from nothing.”