Italian yacht maker Ferretti, which is controlled by Chinese conglomerate Weichai Group, has started taking stock orders from investors as it seeks an additional listing of shares in Milan. The company, which already trades on the Hong Kong bourse, plans to sell up to 97 million existing shares, representing around 28.7% of its share capital.
Ferretti expects to price and allocate shares among investors by the end of the week, with a view to debuting in Milan on June 27, according to a timetable of the deal. One of the investment banks acting on the share sale said shortly after the launch that indicated investor demand covered the full size of the transaction.
The move comes as the luxury sector defies a tough economic backdrop, with inflation, the lingering impact of the pandemic and the Ukraine war, and a general lack of confidence in other sectors. European luxury stocks have boomed, with French group LVMH becoming the first company in the region to reach a market capitalization of more than 500 billion euros earlier this year.
Other overseas-listed European luxury and consumer brands have also considered plans for a dual listing. New York-listed beauty group Coty announced plans last month to explore a dual listing in Paris, while fashion house Prada has also considered listing shares in Milan.
Ferretti, which produces yachts under brands such as Riva and Pershing, completed its initial public offering (IPO) in Hong Kong just over a year ago.