Salvatore Ferragamo to Raise $576.2 Million by Selling Shares

Salvatore Ferragamo SpA, the luxury Italian shoemaker is now offering to sell shares worth millions raise money for future investments. This comes at a time when there is a huge demand for luxury shoes and bags in the Asia Pacific region. The luxury Italian company disclosed that it plans to sell about 38.3 million shares. This would amount to almost 23% stake, and would be worth $576.2 million. The shares would range between 8 and 10.5 Euros.

The company is valued at 1.77 billion Euros and is one of the top luxury companies in the world. Prada too is selling its shares, but for a lesser price than Ferragamo. Prada’s shares would sell for $5, approximately. It would be interesting to see how the situation develops, and if the public would buy shares from luxury houses in times of financial crisis in Europe. However, the stability of Chinese and other Asian economies have encouraged luxury sales, and that perhaps is why the luxury companies are trying to make the most of the situation by raising money and diversifying them further.

Salvatore Ferragamo is an 84 year old shoemaker, who surely knows how to run a luxury empire. You could read a previous article about Ferragamo raising capital, and also how Prada decided to go public in Hong Kong. Do read about the Hong Kong IPO as well. If you wish, you could invest money in luxury houses too, by buying shares for it is one area of investment that sure is going to stay stable. So go ahead, and do the needful!

Via: Bloomberg

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