Moncler plans USD 1.1 billion IPO

By Nicel Jane Avellana

Nov 27, 2013 05:31 AM EST

Italy-based Moncler is set to hold its initial public offering next month to raise EUR 783 million or USD 1.1 billion for the firm's owners. This will be the Italian ski wear maker's second attempt to go public after it decided not to push through with its 2011 plan to launch an IPO. At that time, the ski apparel brand chose to be sold to French private equity company Eurazeo. Moncler makes quilted polyester jackets that sell for USD 1,220 a piece.

Citing the terms of the deal, Bloomberg reported that the IPO hoped to raise anywhere from EUR 585 million to EUR 681 million. The size of the offering may increase by 15% because of the greenshoe option for the underwriters of the IPO. In a statement, Moncler said the price range of the stock is pegged from EUR 8.75 to EUR 10.20 apiece.

The Bloomberg report said Moncler is looking to replicate the success of other fashion brands like Cucinelli and Salvatore Ferragamo when they went public. Cucinelli makes cashmere cardigans worth USD 3,195  a piece while Salvatore Ferragamo is a maker of patent leather platform heels that cost USD 675 a pair. Since they went public in Milan in 2011 and 2012, the shares of the two fashion brands have tripled. This has encouraged the owner of Moncler to make another go for an initial public offering, the report said.

Eurazeo now owns a 45% stake in the ski wear maker, while Carlyle Group Inc, another private equity firm, has an 18% stake in Moncler. According to the terms of the IPO, Eurazeo will offer 14% of its shares in the share sale while Carlyle will put up half of the stake it owns for sale.

After the share sale, an estimated 27% of Moncler's stock will be traded publicly. If the underwriters exercise the greenshoe option, 31% of the stock will be traded after the IPO. The deal terms showed that the pricing for the IPO will be announced on December 11 while shares will start to be traded on December 16. 

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