Golden Goose postpones its IPO

Golden Goose postpones its IPO
Golden Goose postpones its IPO

Keystone-SDA

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June 19, 2024 – 2:51 p.m.

(Keystone-ATS) The Italian fashion group Golden Goose, specialist in luxury sneakers, has postponed its IPO. The transalpine shoemaker cited “market volatility” in the wake of the European elections.

“The elections to the European Parliament and the calling of legislative elections in France have affected the performance of European markets and, in particular, the luxury sector,” the group argued Tuesday evening in a press release. Golden Goose planned to debut on the Milan Stock Exchange on Friday to raise around 550 million euros and was aiming for a capitalization ranging from 1.69 billion to 1.86 billion euros.

Due to “deteriorated” market conditions after the elections in Europe, the group had set its IPO price at 9.75 euros, at the bottom of a range between 9.50 and 10.50 euros per year. action, before finally opting for a postponement. After the price was set, “the order book was largely oversubscribed and the size of the operation was covered by long-term investors,” commented sources close to the group.

Despite the impact of the European elections on the luxury sector, “Golden Goose’s activities continue to do well,” assures the group. “The management and shareholders” of Golden Goose “believe that the current market environment is not conducive to the IPO” of the company. “Golden Goose’s IPO will be reassessed in due course,” the group added.

Golden Goose, which intended to strengthen its capital structure and reduce its debt, planned to place 30% of its shares on the stock market. The luxury company planned to raise 100 million euros through the issue of around 10 million new shares.

The British investment fund Permira, which acquired the majority of its capital in 2020, also planned to sell up to 43.6 million shares at the maximum price, thus aiming for revenues of almost 458 million euros. . Known for its worn-looking sneakers that sell for hundreds of euros and are handmade in Italy, Golden Goose also produces clothing, bags and other accessories.

Golden Goose, whose products target the “new generation of luxury consumers”, claims to have an “enthusiastic and loyal” community of 1.5 million people, the “Dreamers”. Its turnover jumped 18% to 587 million euros in 2023, at constant exchange rates. By 2029, the brand is targeting revenues of around 1 billion euros.

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