MILAN — Italian Design Brands is targeting a market capitalization of €293 million as it prepares to list its shares on Euronext Milan, a regulated market organized and managed by Borsa Italiana.
The company has already filed its prospectus statement with Italy’s stock exchange regulator, Consob. Once approved, the offering is expected to begin in the first half of May.
As one of the country’s largest high-end furniture and design holding companies, IDB is offering approximately 27.5 percent of its share capital at EUR 10.88 per share. IDB will sell both existing and new shares to be issued as part of a capital increase.
“The offer price, which gives the company an equity value of EUR 220 million before the capital increase, was determined taking into account the results and growth prospects of the company and the group,” IDB said in a statement, adding that the equity value is also taken into account market conditions and Consider investments by Tamburi Investment Partners or TIP SpA in the company.
On Tuesday, TIP, which is led by Giovanni Tamburi, founder, chairman and chief executive officer and has stakes in Moncler, Hugo Boss, Italian retailer OVS and Eataly, among others, bought a majority stake in IDB’s parent company.
As part of the agreement, TIP will invest €72 million to buy 50.7 percent of Investindesign, which holds a majority stake in IDB’s capital, it said in a statement. TIP said it could increase its stake in Investindesign by another 20 percent.
Founded in 2015 by Private Equity Partners and a select group of investors through a company called Investindesign, IDB’s portfolio includes 10 companies and 13 brands, including upscale furniture brands Saba Italia, Gervasoni and Meridiani; lighting companies Davide Groppi, Axolight and Flexalighting in North America; and luxury contractors such as Modar and Cenacchi International, who install luxury furniture for shops, showrooms, offices, hotels and luxury homes worldwide.
The offering also includes an over-allotment option of approximately 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 execution of its strategic goals, including organic growth, funding its M&A activities and maintaining capital expenditures and working capital.
Citigroup and Italian investment bank Equita will act as joint global coordinators.
“IDB’s listing project on Euronext Milan and, if conditions are right, on the Star segment remains valid and confirmed for the first half of this year, market conditions permitting,” CEO Andrea Sasso said in an interview with ` in March. “The IPO is a huge pull factor for our companies that will help attract new talent and top executives,” he added.
Andrea Sasso
Photo courtesy of IDB Group
Earlier this year, the group reported that its adjusted net income nearly doubled in 2022, reaching 25.5 million euros, compared to 13.3 million euros in 2021. Revenue increased by 84.8 on a pro forma basis percent to 266.5 million euros. Adjusted earnings before interest, taxes, depreciation and amortization of Italian Design Brands rose 111 percent to 49.2 million euros in 2022, with a pro forma margin of 18.5 percent compared to 16.2 percent in 2021, IDB said.
In June 2022, IDB acquired a majority stake in Gamma Arredamenti International, an Italian company specializing in the manufacture of upholstered furniture. In an operation completed earlier this year, IDB entered the kitchen and systems sector with a majority stake in Cubo Design, an Abruzzo, Italy-based company that owns the Binova and Miton Cucine brands and specializes in the manufacture of specializes in modular kitchens and systems.
The luxury contract business rose 73.6 percent to 68.3 million euros in 2022, while the furniture business rose 39.6 percent to 117 million euros on a pro forma basis. According to its own statements, the company continues to pursue a growth strategy through M&A activities with the aim of consolidating its international presence through the constant integration of new companies.
IDB and Italy’s largest gaming group Lottomatica are among the only companies preparing for an IPO this year despite market turbulence. Lottomatica is expected to start trading on Wednesday.
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