Private equity firm Permira, owner of the Golden Goose sneakers, is preparing to launch an IPO on the Milan Stock Exchange in the first half of 2024. The company's valuation will be around 3 billion euros. In 2020, the Permira fund bought a controlling stake in the Venetian company for 1,3 billion euros from competitor Carlyle, which retained a minority stake, writes fashionmagazine.it.
Permira has selected Bank of America, JPMorgan and Mediobanca as joint global coordinators. But it is possible that other banks will be added to the list.
Investment banks such as Lazard will advise British private equity on the flotation process, although plans could still change, people familiar with the matter said.
Founded in Venice in 2000 by husband and wife team Alessandro Gallo and Francesca Rinaldo, Golden Goose has seen remarkable growth in the first nine months of this year. The company's net turnover amounted to 421 million euros, which is 19% more than the result obtained in the same period in 2022 and 60% compared to 2021.
The stock market entry follows the recent listing of German footwear brand Birkenstock on the US Nasdaq market. The sandals, which have been trending for several seasons now, are currently valued at just over $46 per share, which is almost the same as the offering price. Capitalization is almost $8,7 billion (about 8 billion euros).
But for the first time since listing, the shares returned to this value after a series of falls that also led to an all-time low of $35,83. The German company benefits from a Buy recommendation from average analysts (source Lsge), who have set an average price target of $47,21 per share.
Comparing Birkenstock to the Italian brand, as reported by the Financial Times, the former is worth 20 times its gross operating profit, which is 15 times Golden Goose.
Another example is punk rock boots Dr Martens (another Permira investment), which floated on the London Stock Exchange in early 2021: their valuation at the time was more than 20 times the company's EBITDA, which, however, fell six times , based on current prices.
It's a similar story at Tod's, whose value on the Milan Stock Exchange is seven times the company's gross operating profit. Thus, banks can support companies by quoting high multiples, but newcomers must be able to convince investors in the long term.