The Italian fashion label, Prada, has long been referred by some people as a status symbol. The fashion label was founded by Mario Prada and mostly specializes in crafting luxury goods for men and women including ready-to-wear, leather accessories, shoes, luggage and hats. The company is now coming up with its own Initial Public Offering on Hong Kong Stock Exchange on June 24th this year. With this the riches for the husband and wife team will increase by $5 billion each.
Miuccia Prada, creative director and granddaughter of the founder, Mario Prada, and her husband CEO Patrizio Bertelli both own 33.2% stake in the firm-each. It plans to float 16.5% of its share capital that will bring cash flows of $2.6 billion. If the high-end estimates are realized, the fashion house is to be valued over $15 billion thus giving $10 billion to the duet for their combined stake. With this, Bertelli would be put in the next year’s Forbes Billionaire list.
The creative director of the fashion house, Miuccia Prada has largely been credited for revamping the image of Prada. In 1985, she unveiled the black nylon Prada handbag which is an icon in itself. She also brought in the ready-to-wear women’s collection. The decade of 90s made Prada a second name for the understated, clean-cut elegance with stars from the tinsel town donning their apparel at red carpet events. It is also the only second high-profile brand with a public offering in Hong Kong. Last year it was French Cosmetics firm Clare O’Connor that came up with their IPO in HK.