MILAN — The Italian Stock Exchange has accepted Italian Design Brands’ application for an IPO, the company said in a statement on Tuesday.
The Italian furniture, lighting and contracting holding company’s shares are expected to start trading on May 18 on Euronext Milan, a regulated market organized and managed by Borsa Italiana. The company is still awaiting the official green light from Consob, Italy’s equivalent of the Securities and Exchange Commission. The offer period began on Tuesday and is expected to end on May 15.
Italian Design Brands is targeting a market capitalization of EUR 293 million and is offering around 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.
Earlier this month Tamburi Investment Partners or TIP SpA bought a majority stake in IDB’s parent company.
TIP, led by Giovanni Tamburi, Founder, Chairman and Chief Executive Officer, has stakes in Moncler, Hugo Boss, Italian retailer OVS and Eataly, among others.
Under the terms of the agreement, TIP will invest EUR 72 million to buy 50.7 percent of Investindesign, which holds a majority stake in IDB’s capital. 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.
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 increased 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.
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