Prada expected to list in Hong Kong

Prada, the Italian producer of Miu Miu bags and Church's shoes, has won approval from Hong Kong's stock exchange for a US$2 billion initial public offering.

Prada, the Italian producer of Miu Miu bags and Church's shoes, has won approval from Hong Kong's stock exchange for a US$2 billion (Dh7.34bn) initial public offering, two people with knowledge of the matter said yesterday.

The Milan company set June 24 as a tentative listing date, said the people, who declined to be identified.

Prada announced last month that it signed a joint-venture deal with the UAE retailer Al Tayer to sell its brands across the Gulf.

The joint venture will be headquartered in Dubai and launch Prada and Miu Miu stores across the region, including in malls in Abu Dhabi and Dubai.

Prada follows European companies including L'Occitane International in seeking to sell shares in Hong Kong, where IPOs reached a record last year. By listing there, the Italian company will tap local funds and individual investors betting on the luxury-goods industry's growth in Asia. The bag makers Coach and Samsonite are also planning listings in Hong Kong.

A spokesman for Prada in Milan had no comment. Mainland China will remain the fastest-growing market for luxury goods this year with sales expected to rise 25 per cent to €11.5 billion (Dh60.48bn), the consultancy Bain & Co said this month.

The country is on course to become the world's third-largest luxury market in five years, Bain said.

Prada's net income more than doubled to €250.8 million last year on growth in the Asia-Pacific region, where sales jumped 63 per cent.

Total revenue increased 31 per cent to €2.05bn, the company said on March 28.

Prada, which postponed plans to list in 2008 because of adverse market conditions, is controlled by Patrizio Bertelli, its chief executive, his wife, Miuccia Prada, and her family. The company sells clothing and accessories under the Prada, Miu Miu, Church's and Car Shoe brands.

* with agencies