The Italian fashion house, which has been on the road trying to raise money over the past few weeks, has lowered its IPO price range, now pricing its shares between $5.07 and $5.24. The stock price range would value the company somewhere between the $13 billion and $14 billion mark. This side of a week ago, when the shares were going for between $4.68 and $6.16, the company was valued just south of $16 billion.
Still there’s no reason to worry. Again, Prada (and the people who run it) is still worth a whole lotta cash. Plus, the added benefit of a lower valuation might be that the company’s stock prices rise during its debut, which would attract more investors and, in general, make the company look really good. And as far as has been reported, people along the fundraising tour think the company looks pretty good already:
As reported, the institutional demand for shares appears to be going well but retail investors in Hong Kong have not been as enthusiastic about the offer. A source said offers from New York, where the Prada roadshow is taking place this week, were strong.
All good signs that when Prada starts trading on the Hong Kong Stock Exchange next week, it’s going to be a huge hit.