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Mediolanum Leads Italian Investors in Ferretti’s IPO Source in Hong Kong

A Ferretti stand sits among yachts on display at the Singapore Yacht Show at Sentosa Island on April 25, 2015. Picture taken April 25, 2015. REUTERS/Edgar Su

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MILAN, March 30 (Reuters) – Italian investors led by Milan-based asset manager Banca Mediolanum (BMED.MI) bought into an IPO of luxury yacht maker Ferretti in Hong Kong in which Chinese investors took the lion’s share, a person with knowledge of the thing said.

Mediolanum declined to comment.

Despite turbulent markets and a backdrop of international sanctions against Russia that have led to the seizure of megayachts owned by oligarchs, Ferretti managed an 890 million euro ($993 million) IPO last Friday, two years after an earlier attempt failed was. Continue reading

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After pricing its IPO at the lower end of the stated range, Ferretti said on Wednesday it pocketed HK$1.77 billion (US$226 million) net from the deal.

It will use the money to expand its portfolio of brands and also strengthen services for its boats’ owners, it has said.

Chinese companies Sunshine Insurance, Sanya Development Holdings, Hainan Free Trade Port Fund, Hainan Financial Holdings and Haifa Holding acted as cornerstone investors, taking 53% of the bid, Ferretti said.

Of the rest, the top 10 investors took more than half, said the source and a second person close to the deal.

The two sources said Italian involvement was hampered by the fact that some of the investors looking to buy into the IPO did not have accounts denominated in Asian stocks to trade.

Ferretti, whose brands include Riva, Pershing and Wally, is owned by Chinese conglomerate Weichai Group.

Piero Ferrari, son of the founder of the luxury sports car company of the same name, Enzo Ferrari, owns 11% of the company and sits on the board.

The Hong Kong bid was 1.07 times oversubscribed, while demand for the international bid was more than double the amount offered for sale, the company said.

Ferretti shares are traded on Thursday.

($1 = 7.8268 Hong Kong dollars) ($1 = 0.8964 euros)

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Reporting by Valentina Za in Milan and Lucy Raitano in London Editing by Keith Weir

Our standards: The Thomson Reuters Trust Principles.

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