Another Italian luxury brand to go for IPO.
Salvatore Ferragamo has announced June 29 as the date for its Milan listing. The family-own luxury company based in Florence plans to float 25% of its stock on the Milan Stock Exchange. Reuters
Ferragamo hopes to raise up to 402 million euros from selling up to 25% of its main shareholder’s share at price range of between 8 and 10.50 euros per share valuing the company at 1.77 billion euros, at 21 times their forecasted 2011 earnings. Daily Front Row
Compare this to Prada’s 28 times earning which is on the high side compared to the PE of other European luxury groups such as Tod’s (25) and LVMH (18.5) its better value.
We say buy the shares and own a piece of the company if you already buy their shoes!