Fashion house Prada seeks to raise €1bn through shares sale in Milan

A model in s Prada black strapless dress.

Prada is considering seeking at least €1bn from a second listing in Milan, people familiar with the matter said, as the Italian fashion house looks to diversify its investor base away from Hong Kong.

The Milanese maker of luxury clothing, fragrances and accessories is working with Goldman Sachs on preliminary preparations for a potential offering, according to sources. A listing would likely take place next year, they said.

Prada raised $2.1bn (€2bn) by listing a 20% stake in Hong Kong at a time when large luxury brands were flocking to the Asian market to cater to their largest customer base. The company, which has a market value of $14.8bn is looking to raise funds by selling new shares in Milan, the sources said.

A vehicle backed by co-chief executive Miuccia Prada and her husband, Italian businessman Patrizio Bertelli, holds 80% of the fashion company. They are unlikely to cut their stake in any deal, the people said.

Prada and its advisers are working through the complexities of attempting the first Hong Kong-Milan dual listing and no final decisions on size or timing have been taken, according to the people. Prada’s chairman Paolo Zannoni said in July that while a dual listing in Milan has always been an option for the company, it was not a priority.

Representatives for Prada and Goldman Sachs declined to comment.

 Bloomberg