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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Featured photo : © Ferretti
