Yacht-maker Ferretti takes stock orders for Milan launch

Reuters | June 21, 2023

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LONDON (Reuters) -Italian yacht maker Ferretti, pursuing an additional listing of shares in Milan, started taking stock orders from investors on Wednesday, as the luxury sector defies a tough economic backdrop.

The company, which already trades on the Hong Kong bourse, plans to sell up to 97 million existing shares, representing around 28.7% of its share capital.

It expects to price and allocate shares among investors by the end of the week, with a view to debuting in Milan on June 27, according to a timetable of the deal.

One of the investment banks acting on the share sale said shortly after launch that indicated investor demand covered the full size of the transaction.

The broader economy has suffered from inflation, the lingering impact of pandemic and the Ukraine war, and a general lack confidence in other sectors has translated into a dearth of new listings, but European luxury stocks have boomed.

French group LVMH became the first company in the region to reach a market capitalization of more than 500 billion euros ($545.80 billion) earlier this year.

Other overseas-listed European luxury and consumer brands have considered plans for a dual listing.

New York-listed beauty group Coty announced plans last month to explore a dual listing in Paris, while Fashion house Prada has also considered listing shares in Milan.

Ferretti, which is controlled by Chinese conglomerate Weichai Group, completed its initial public offering (IPO) in Hong Kong just over a year ago.

($1 = 0.9161 euros)

(Reporting by Pablo Mayo Cerqueiro; editing by Louise Heavens, Jason Neely and Barbara Lewis)