MILAN — The Italian Stock Exchange has accepted Italian Design Brands’ request for an initial public offering, the company said in a statement on Tuesday.
Shares of the Italian furnishings, lighting and contract business holding’s shares are expected to start trading on Euronext Milan, a regulated market organized and managed by Borsa Italiana, on May 18. The company also received the official green light from Consob, Italy’s equivalent of the Securities and Exchange Commission on Thursday. The offer period commenced Tuesday and is expected to close May 15.
Italian Design Brands is targeting a market capitalization of 293 million euros and is offering about 27.5 percent of its share capital at 10.88 euros a share. IDB will be selling both existing shares and new ones to be issued under a capital increase.
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Earlier this month, Tamburi Investment Partners, or TIP SpA bought a majority stake in IDB’s parent company.
TIP, which is helmed by Giovanni Tamburi, founder, chairman and chief executive officer, has stakes in Moncler, Hugo Boss, Italian retailer OVS and Eataly, among others.
Under the agreement, TIP will invest 72 million euros to buy 50.7 percent of Investindesign, which holds a majority stake in IDB’s capital. TIP said it could raise its stake in Investindesign by another 20 percent.
Established in 2015 by Private Equity Partners and a select group of investors through a company called Investindesign, IDB’s portfolio encompasses 10 companies and 13 brands including upscale furniture brands Saba Italia, Gervasoni and Meridiani; lighting companies Davide Groppi, Axolight and Flexalighting in North America, as well as luxury contract companies like Modar and Cenacchi International, which makes installation of luxury furnishings for stores, showrooms, offices, hotels and luxury homes globally.
The offering will also include a greenshoe option, equal to about 15 percent of the maximum number of shares.
IDB said earlier this year that the proceeds from the capital increase will be used to support the implementation of its strategic objectives, including organic growth, the financing of its M&A activity and to sustain capital expenditures and working capital.
Citigroup and Italian investment bank Equita will act as joint global coordinators.
Earlier this year, the group reported that its adjusted net profit almost doubled in 2022, reaching 25.5 million euros, compared to 13.3 million euros in 2021. Sales rocketed 84.8 percent on a pro-forma basis to 266.5 million euros. Italian Design Brands’ adjusted earnings before interest, taxes, depreciation and amortization rose 111 percent to 49.2 million euros in 2022, with a pro-forma margin of 18.5 percent, up from 16.2 percent in 2021.