Nov 27, 2013
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Moncler sets for largest European luxury IPO this year

Nov 27, 2013

MILAN, Italy - Moncler on Tuesday unveiled the first details of a much awaited share sale that could value the Italian skiwear maker at more than 2.5 billion euros (£2.1 billion) in what is expected to be the largest flotation in the European luxury sector this year.

Moncler in Geneva | Source: Moncler

The goosedown jacket maker said it had set an indicative price range of 8.75-10.2 euros ($11.9-$13.80) per share. This would value the company at 2.2 billion euros, at the bottom of the range, a source close to the initial public offering told Reuters.

The deal will give the company an estimated free float of just above 26 percent, the source added on condition of anonymity.

The indicative price range values Moncler at about 10-12 times expected 2014 earnings before interest, tax, depreciation and amortization (EBITDA). The bottom of the range is roughly in line with industry leaders such as LVMH and Kering.

The shares are expected to make their market debut on December 16, the source said, making it the third listing on the main Milan stock exchange this year. Notebook maker Moleskine made its debut on the Milan bourse in April and Italian freight forwarding company Savino del Bene is expected to list on December 6.

Details of the deal will be published in the prospectus on Thursday, Moncler said in a statement, adding it had received approval from the Italian stock market regulator.

A report used to market the deal to investors by joint-bookrunners Banca IMI (ISP.MI) valued the company at around 2.4 billion euros based on how much investors are willing to pay for other Italian luxury brands.

This figure is double the valuation given to Moncler when it called off an IPO attempt in 2011 and opted instead to sell a 45 percent stake to French investment group Eurazeo in a deal which valued the brand at 1.2 billion euros.

Eurazeo is now selling some of its stake through the IPO, which consists entirely of existing shares.

Fellow shareholders Carlyle and Brands Partners 2 are also selling down their stakes, while company president Remo Ruffini, who helped boost the brand's sales, plans to retain his 32 percent controlling stake.

Since Ruffini took control in 2003, Moncler's sales have leaped from 45 million euros to 489 million euros in 2012.

Global coordinators in the initial public offering are Goldman Sachs GSGSC.UL, Bank of America Merrill Lynch BACML.UL and Mediobanca.

Banca IMI, JP Morgan, Nomura and UBS are joint bookrunners and BNP Paribas BNPPZ.UL, Equita SIM and HSBC HSBCUK.UL are lead managers while Claudio Costamagna and Lazard are the financial advisers.

$1 = 0.7374 Euro

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