MILAN (AP) — Moncler, an Italian fashion house famous for its down coats, is establishing an initial public offering in what Milan’s main stock exchange hopes will foster its strategy to become a global hub for high-end goods business listings.
It is the next effort at a public listing for Moncler, a once French mountainwear firm that pulled back two years ago because of poor market conditions. That it’s going bodes well for the Milan Stock Exchange, which is attempting to make use of the combination of monetary and trend know how of the city to bring high-end goods businesses in need of funding — especially at a time when banks are offering loans that are fewer.
Now, 17 high-end companies, including Brunello Cucinelli cashmere casualwear Salvatore Ferragamo shoemaker, Moleskin bound diaries, Tod’s leatherwear and Luxottica eyewearmaker, are listed for a whole sector market value of 32 billion euros ($43 billion) in Milan. That is up from 13 billion euros a decade past.
“It is the second for extravagance,” said Gianluca Pacini, an analyst in the bank Intesa San Paolo. Moncler in particular, Pacini said, shown great earnings increase and has a solid company. The business went from 50 million euros in sales in 2003 to 489 million euros last year, for net gains of 82.4 million euros.
Raffaele Jerusalem, chief executive of the Milan Stock Exchange, anticipates another four or five businesses that are high-end to follow Moncler in the forthcoming months. He says the successful stock launchings of Cuccinelli and Ferragamo, which have almost doubled their market value in the past year, are going a long approach to convincing little- and medium-sized Italian firms to visit marketplaces for cash.
“There is a solid change of attitude at this generation,” he said, though he admitted it’s taken time to reduce unwillingness of Italian company owners to open up their publications to investors.
“The anxiety entrepreneurs had about giving out advice has transformed a bit, additionally because banks are much less competent to give out cash they should grow,” Jerusalem said.
Banks in Italy are cutting back on dangers — that means fewer loans, especially to small businesses of the type that rule the trend world in Italy and took enormous losses during the fiscal disaster.
The draw in Milan, according to Jerusalem, lies in the diversity of investors in the exchange and also its focus of international fashion brands. A large proportion of investors in listed firms is not native.