Prada upbeat on HK IPO despite global market turmoil

Prada SpA and its bankers said recent turmoil in world stock markets won't weaken their upcoming Hong Kong IPO.

Executies are in the midst of an international roadshow to promote its expansion into Asian markets.

Prada and Goldman Sachs executives said they think individual investors in Hong Kong will be enthusiastic when the local part of the initial public offering begins this week.

Prada is selling some 423.3 million shares - equivalent to a 16.5 percent stake - making it the first Italian company to go public on the southern Chinese financial center's stock exchange. The shares will be priced on June 17 and start trading June 24.

Prada, which also owns the Miu Miu, Church's and Car Shoes brands, is the latest in a string of foreign companies to list in Hong Kong this year as they seek to tap economic growth in Asia and raise their brand awareness.

However, sliding stock markets around the globe have made it hard for another international listing, Samsonite International S.A., to reach its maximum valuation.

"Despite recent market turmoil, the Prada team is very optimistic," said Mary Koo, an executive director in Goldman Sachs' consumer retail division. Goldman is one of the investment banks working on the deal.

The full story is available at thestar.