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Italian luxury fashion house Prada is weighing a second listing of at least $1 billion in Milan, in a bid to diversify its investor base, Bloomberg reported.
Why it matters: Prada joins other big luxury names — looking at you Tom Ford and Giorgio Armani — testing the market's seemingly robust appetite for luxury retail.
What's happening: Prada is working with Goldman Sachs on early preparations for the potential offering, Bloomberg says.
- A listing would likely occur next year, though the timing and exact size haven't been determined.
- The fashion house wants to shift its investor base away from its Hong Kong concentration, per the report.
Catch up fast: In 2011, Prada raised $2.1 billion by listing a 20% stake in Hong Kong.
- At that time, many luxury brands were flocking to the Asian market to serve their largest customer base.
- In July, Prada chairman Paolo Zannoni acknowledged that the company was considering a Milan listing, but that it was not a priority.
- The remaining 80% of the company is owned by a vehicle backed by co-CEO Miuccia Prada and her husband, Patrizio Bertelli.
Of note: That 80% is not likely to get cut in the event of a deal, Bloomberg reports.
The bottom line: With a market capitalization of $14 billion, it's logical that Prada would look to widen its investor base and let more U.S. and European players into the sandbox.