Prada cuts price to get IPO down catwalk
Italian fashion house Prada has made it down the stock-market catwalk at its fifth attempt – but only after cutting the price of its listing by a fifth at the last minute.
Prada's listing on the Hong Kong Stock Exchange yesterday saw it raise £1.3bn after it priced its stock right at the bottom of the range set earlier this week. It had been expected to raise as much as £1.6bn.
While Prada has impressed investors with a series of glitzy events in the run-up to the IPO, including a fashion show for key fund managers, volatility on stock markets around the world in the past few days came at the worst possible moment for the company. Market nervousness also hit the Hong Kong flotation of Samsonite, the luggage company, on Wednesday.
Prada's was also hit when it warned investors they would have to pay Italian capital gains tax on profits made from selling its shares as well as income tax on dividends at a rate of up to 27 per cent. Private investors in Hong Kong, often active participants in IPOs, do not usually pay such levies.
Still, Miuccia Prada and Patrizio Bertelli, who run the family company with a controlling stake in Prada, will be relieved to have got the fundraising away. Previous Prada IPOs have been derailed by unforeseen events such as 2001's terrorist attacks in the US.
- 1 Migrant crisis: Greek soldier saved 20 people singlehandedly off Rhodes beach
- 2 Sofyen Belamouadden murder: The inside story of a crime that horrified Britain
- 3 Company breaks open Apple Watch to discover what it says is 'planned obsolescence'
- 5 UK weather: Britain braced for snow as arctic air mass moves in
Migrant crisis: Greek soldier saved 20 people singlehandedly off Rhodes beach
Ian Brady: Moors murderer announces his support for Ukip and the SNP
Aaron and Melissa Klein: Oregon anti-gay bakers ordered to pay $135,000 after refusing to make cake for same-sex wedding
UK weather: Britain braced for snow as arctic air mass moves in
Bali Nine executions in Indonesia: Death row British grandmother Lindsay Sandiford says she 'just wants to get it over with'
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
iJobs Money & Business
£20000 - £22500 per annum + OTE £30K: SThree: SThree Group have been well esta...
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...
£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...