Will Prada diversify away from Hong Kong with a Milan listing? Miuccia Prada and husband Patrizio Bertelli are reportedly hoping to raise US$1 billion by listing the luxury brand in their home city

Aug 17 , 2022

Prada has raised billions in Hong Kong, but is now considering seeking more funds in its native Italy. Photo: SCMP Archive.

With Tom Holland and Kendall Jenner as brand ambassadors, mighty luxury brand Prada already has a market value of US$14.8 billion – but is looking to raise even more

As Hong Kong’s status as a financial hub is called into question and a recession looms in the West, Miuccia Prada is reportedly exploring the possibility of a dual listing in Milan

Prada is considering seeking at least US$1 billion from a second listing in Milan, people familiar with the matter said, as the Italian fashion house looks to diversify its investor base away from Hong Kong.

The Milanese maker of luxury clothing, fragrances and accessories is working with Goldman Sachs Inc. on preliminary preparations for a potential offering, according to sources who asked not to be identified discussing confidential information. A listing would likely take place next year, they said.

Before the Covid-19 pandemic, Prada listed on the Hong Kong stock exchange when business in China was booming. Photo: Reuters

Prada raised US$2.1 billion in 2011 by listing a 20 per cent stake in Hong Kong at a time when large luxury brands were flocking to the Asian market to cater to their largest customer base. The company, which has a market value of HK$115.7 billion (US$14.8 billion) and boasts celebrity ambassadors such as Tom Holland and Kendall Jenner, is looking to raise funds by selling new shares in Milan, the sources said.

Prada SpA is looking to attempt the first Hong Kong-Milan dual public listing. Photo: Bloomberg

A vehicle backed by co-CEO Miuccia Prada and her husband, Italian businessman Patrizio Bertelli, holds 80 per cent of the fashion company. They are unlikely to cut their stake in any deal, the source said.

Prada and its advisers are reportedly working through the complexities of attempting the first Hong Kong-Milan dual listing and no final decisions on size or timing have been taken. Prada’s chairman Paolo Zannoni said in July that while a dual listing in Milan has always been an option for the company, it was not a priority.

The Prada store inside Hong Kong’s IFC shopping centre. Photo: Shutterstock

Representatives for Prada and Goldman Sachs declined to comment.

In a European market devoid of new share sales due to heightened inflation, rising interest rates and the looming risk of recession, some luxury brands are bucking the trend. Sports car maker Porsche is working on an initial public offering that could be one of Europe’s largest ever.