While there was sufficient demand for the shares offered, the sneaker brand backed by Permira I was ready to set a price of 9.75 euros per share, towards the lower end of its range of 9.50 euros to 10.50 euros. This, along with volatility in European stock markets, fueled concerns that the stock would fall after the debut, according to sources cited by Bloomberg.
Experts say that the decision to list was made at a time when luxury companies were in decline, affected by the reduction in margins as a result of the drop in Chinese demand. Large companies such as LVMH, Moncler and Rolex are being punished by investors.
The rise of political risk following the EU elections two weeks ago and the French legislative elections this weekend are fuelling uncertainty and have affected Golden Goose’s outlook, which is calling its decision to postpone its initial public offering (IPO) a pause.
Milan-based Golden Goose had planned sell around 10.5 million shares, while the majority owner Permira was going to offer 43.6 million existing shares, with the campaign call scheduled for June 21. At the upper end of the price range, the listing would have raised a figure close to 600 million euros, taking the company’s valuation to approximately 1.7 billion euros, according to analyst calculations.
Slap for the Milan Stock Exchange
Golden Goose’s IPO would have been the largest on the Milan Stock Exchange after Lottomatica, in May last year. Others officially postponed this week are Greyhound and Flix; and it is speculated that the same will happen with Zabka Polska and Tendam, both in the CVC environment.
Golden Goose’s decision comes at the same time as that made in Spain by Europastry. The frozen bakery products company confirmed on Friday that it is putting its IPO on hold due to “increasingly unfavourable” market conditions.
