International Luxury Brands Are Coming To Hong Kong To Find Money.

After several failures, Italy

Prada set a price of $4.69-6.17 per share, and the market value will be between 11 billion 400 million -146 billion dollars.

It is understood that Prada intends to raise $2 billion 600 million, most of the funds raised will be used to expand Prada's Direct stores.

In 1913, Prada, which was founded in 1913, launched its five listing plan in the past ten years. It was stranded for the first four times because of the force majeure factors such as "9 11" and the financial crisis. It is also scheduled for fifth times in June this year.

Prada's listing in Hongkong will become the largest consumer product IPO.

LVMH in France, Burberry listed in the UK, Coach listed in the United States and PPR of the parent company of GUCCI are currently lower in local valuations than Prada. Most of the forecast in 2011 is only 14-21 times the price earnings ratio, which shows the high premium of Prada.

The first French perfume to be listed in Hongkong.

In addition to Prada, Coach, a high-end fashion brand in New York, recently announced that the company is interested in issuing two depositary receipts in Hongkong, which will be listed on the Hongkong stock exchange.

Several luxury brands, including Diana's Jimmy Choo and other luxury brands, are also coming to Hong Kong for sale.

Samsonite, the US suitcase manufacturer, announced that it will be listed in Hongkong in June.

Sales market drives capital market

"If IPO represents a market, then we should go to IPO in this market."

Prada CEO Bertelli has said.

"The luxury brand's choice of Hongkong's listing is optimistic about the strong sales growth potential of the Asian market."

Liu Jiecheng, general manager of Chi Cheng international brand Consultancy Co., said, "now China has surpassed the United States to become the second largest luxury consumer market in the world, and it is expected to surpass Japan in 5 years to become the world's largest luxury consumer market.

At present, Burberry, which is listed in London and has a market value of about 5 billion 500 million pounds, says that the Asian market, especially China's growth is strong. Burberry's second listing in Hong Kong is not only for raising funds, but also for developing brand and market intensity.

Insiders said, "as the main battleground of high-end luxury goods consumption in Asia, the Hongkong market has high quality capital market liquidity, which is more conducive to the rapid financing of Prada, a more urgent financing company.

The capacity of Hongkong's capital market is limited, and the luxury brands coming from late will face fierce competition.

In the next few years, the luxury Hongkong listing boom will grow stronger. "

IDG, the head of the US international data group, said: "the listing procedures in Hongkong are simple and quick, the advertising effect of luxury goods is outstanding, and the absolute advantage of being a duty-free port is more and more overseas luxury brands are listed in Hongkong".

Rising tide of luxury investment

Not only are we going to Hong Kong to go public, but also the luxury industry is attracting more and more attention from the capital market. Some fund companies are also aiming at the investment opportunities in the luxury industry.

Recently, China's first luxury fund, the world's top consumer goods equity fund, came out, focusing on the world's top consumer goods industry and related stocks.

"Luxury industry can not only share the international brand feast, but also benefit from China's wealth accumulation and consumption upgrading, which is an attractive investment target."

Fullgoal Fund Management Company Ltd manager Lu Ye said, "compared with traditional consumer goods, the entry barriers in the field of luxury consumption are higher and the competition pressure is smaller.

Secondly, the pricing power of luxury goods is very strong, and the impact of raw materials and artificial price increases is far less than that of low-end consumption. This characteristic brings higher profit growth for the luxury goods industry.

Luxury companies also have a higher brand premium.

Many luxury brands have gone through nearly a hundred years of accumulation, containing rich historical and cultural connotations, tested and surviving. "