Italian yacht builder Ferretti on the road to a dual listing

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Ferretti, the yacht builder that owns brands such as Riva, is closer than ever to a dual listing. Listed on the Hong Kong Stock Exchange since last year, the Italian manufacturer is set to join the Milan Stock Exchange in the near future. A move that could lead the way, not least for the Prada luxury group.

 

Yacht builder Ferretti back home? The luxury yacht builder is set to become the first Hong Kong-listed company to also set up in Milan.

 

Its main shareholder, Chinese state-owned conglomerate Weichai Group, which bought the shipbuilder in 2012 when it was in trouble, plans to sell around half of its 64% stake via the Milan Stock Exchange.

 

Ferretti, which went public in Hong Kong last year, intends to launch the share sale as soon as it receives approval from the authorities and subject to market conditions, according to a document filed with the Hong Kong stock exchange.

 

This approach offers few advantages in terms of valuation. But it could provide a hedge against growing geopolitical risks, as tensions between China and the West intensify.

 

With this return to the fold, Ferretti is stealing a march on the $17 billion Galleria bag manufacturer. But also its compatriot, the luxury group Prada, which is also tempted to follow suit.

 

Prada tempted to follow suit

 

Since its IPO in Hong Kong in 2011, Prada’s shares have only been traded in the Asian financial center. However, this decision has resulted in disappointing annual returns of just 4%, including dividends, according to Refinitiv data. Despite expressing a willingness to trade shares in their home country, owners Miuccia Prada and Patrizio Bertelli were reluctant to reduce their stake by 80%, slowing IPO plans.

 

Ferretti’s quick action now leaves Prada with no excuse. Lorenzo Bertelli, heir to the Prada fortune, has openly spoken of the need to hedge geopolitical risks with a European listing. The current changes could force Prada to take action sooner than expected.

 

Chinese help

 

For Ferretti, Hong Kong has been a useful springboard. By listing in the Asian financial center, CEO Alberto Galassi was able to secure the valuation of around $1 billion that he had failed to achieve in Milan in 2019. Having the conglomerate Weichai Group as parent company also helped. Five Chinese state-backed entities pledged to buy half of the new shares on offer before Ferretti’s $244 million IPO.

 

The financial logic of a second listing in Italy is not immediately obvious. Ferretti shares trade at 12 times this year’s forecast net profit of €78 million, a far cry from the 15-times multiple at its rival, Milan-based manufacturer Sanlorenzo. At a compound annual rate of 14%, Ferretti’s revenue growth since 2018 is admittedly well below the 23% rate achieved by Sanlorenzo.

 

Digital shares

 

Ferretti’s imminent market entry suggests that the technical hurdles that seemed to have held back Prada’s dual-listing plans are not insurmountable. One problem is the Italian stock market’s requirement that all shares be in digital form. In Hong Kong, many shares still exist as physical certificates and are only traded electronically once they have been deposited in a centralized system.

 

To solve this problem, Ferretti has obtained a waiver from the Hong Kong authorities allowing it to convert its outstanding paper shares. Owners will have to deposit their shares with brokers or registrars within a specified period.

 

 

Read also >The Ferretti Group’s debut on the Hong Kong Stock Exchange

Featured photo : © Ferretti[/vc_column_text][/vc_column][/vc_row][vc_row njt-role=”not-logged-in”][vc_column][vc_column_text]

Ferretti, the yacht builder that owns brands such as Riva, is closer than ever to a dual listing. Listed on the Hong Kong Stock Exchange since last year, the Italian manufacturer is set to join the Milan Stock Exchange in the near future. A move that could lead the way, not least for the Prada luxury group.

 

Yacht builder Ferretti back home? The luxury yacht builder is set to become the first Hong Kong-listed company to also set up in Milan.

 

Its main shareholder, Chinese state-owned conglomerate Weichai Group, which bought the shipbuilder in 2012 when it was in trouble, plans to sell around half of its 64% stake via the Milan Stock Exchange.

 

Ferretti, which went public in Hong Kong last year, intends to launch the share sale as soon as it receives approval from the authorities and subject to market conditions, according to a document filed with the Hong Kong stock exchange.

 

This approach offers few advantages in terms of valuation. But it could provide a hedge against growing geopolitical risks, as tensions between China and the West intensify.

 

With this return to the fold, Ferretti is stealing a march on the $17 billion Galleria bag manufacturer. But also its compatriot, the luxury group Prada, which is also tempted to follow suit.

 

Prada tempted to follow suit

 

Since its IPO in Hong Kong in 2011, Prada’s shares have only been traded in the Asian financial center. However, this decision has resulted in disappointing annual returns of just 4%, including dividends, according to Refinitiv data. Despite expressing a willingness to trade shares in their home country, owners Miuccia Prada and Patrizio Bertelli were reluctant to reduce their stake by 80%, slowing IPO plans.

 

Ferretti’s quick action now leaves Prada with no excuse. Lorenzo Bertelli, heir to the Prada fortune, has openly spoken of the need to hedge geopolitical risks with a European listing. The current changes could force Prada to take action sooner than expected.

 

Chinese help

 

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Ferretti, the yacht builder that owns brands such as Riva, is closer than ever to a dual listing. Listed on the Hong Kong Stock Exchange since last year, the Italian manufacturer is set to join the Milan Stock Exchange in the near future. A move that could lead the way, not least for the Prada luxury group.

 

Yacht builder Ferretti back home? The luxury yacht builder is set to become the first Hong Kong-listed company to also set up in Milan.

 

Its main shareholder, Chinese state-owned conglomerate Weichai Group, which bought the shipbuilder in 2012 when it was in trouble, plans to sell around half of its 64% stake via the Milan Stock Exchange.

 

Ferretti, which went public in Hong Kong last year, intends to launch the share sale as soon as it receives approval from the authorities and subject to market conditions, according to a document filed with the Hong Kong stock exchange.

 

This approach offers few advantages in terms of valuation. But it could provide a hedge against growing geopolitical risks, as tensions between China and the West intensify.

 

With this return to the fold, Ferretti is stealing a march on the $17 billion Galleria bag manufacturer. But also its compatriot, the luxury group Prada, which is also tempted to follow suit.

 

Prada tempted to follow suit

 

Since its IPO in Hong Kong in 2011, Prada’s shares have only been traded in the Asian financial center. However, this decision has resulted in disappointing annual returns of just 4%, including dividends, according to Refinitiv data. Despite expressing a willingness to trade shares in their home country, owners Miuccia Prada and Patrizio Bertelli were reluctant to reduce their stake by 80%, slowing IPO plans.

 

Ferretti’s quick action now leaves Prada with no excuse. Lorenzo Bertelli, heir to the Prada fortune, has openly spoken of the need to hedge geopolitical risks with a European listing. The current changes could force Prada to take action sooner than expected.

 

Chinese help

 

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Thanks to its extensive knowledge of these sectors, the Luxus + editorial team deciphers for its readers the main economic and technological stakes in fashion, watchmaking, jewelry, gastronomy, perfumes and cosmetics, hotels, and prestigious real estate.

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