Italy’s IDB Seeks 293M Euro Valuation in IPO
MILAN — Italian Design Brands is targeting a market capitalization of 293 million euros as it prepares to list its shares on Euronext Milan, a regulated market organized and managed by Borsa Italiana.
The company has already filed its prospectus statement to Italy’s market watchdog Consob. Upon approval, the offering is expected to start within the first half of May.
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One of the nation’s largest high-end furniture and design holdings, IDB is offering about 27.5 percent of its share capital at 10.88 euros a share. IDB will be selling both existing shares and new ones to be issued under a capital increase.
“The offer price, which attributes to the company an equity value before the capital increase of 220 million euros, has been determined considering the company’s and group’s results and growth prospects,” IDB said in a statement, adding that its equity value also takes into account market conditions and Tamburi Investment Partners, or TIP SpA’s, investment in the company.
On Tuesday, TIP, which is helmed by Giovanni Tamburi, founder, chairman and chief executive officer and which has stakes in Moncler, Hugo Boss, Italian retailer OVS and Eataly, among others, bought a majority stake in IDB’s parent company.
Under the agreement, TIP will invest 72 million euros to buy 50.7 percent of Investindesign, which holds a majority stake in IDB’s capital, it said in a statement. TIP said it could raise its stake in Investindesign by another 20 percent.
Established in 2015 by Private Equity Partners and a select group of investors through a company called Investindesign, IDB’s portfolio encompasses 10 companies and 13 brands including upscale furniture brands Saba Italia, Gervasoni and Meridiani; lighting companies Davide Groppi, Axolight and Flexalighting in North America, as well as luxury contract companies like Modar and Cenacchi International, which makes installation of luxury furnishings for stores, showrooms, offices, hotels and luxury homes globally.
The offering will also include a greenshoe option, equal to about 15 percent of the maximum number of shares.
IDB said earlier this year that the proceeds from the capital increase will be used to support the implementation of its strategic objectives, including organic growth, the financing of its M&A activity and to sustain capital expenditures and working capital.
Citigroup and Italian investment bank Equita will act as joint global coordinators.
“IDB’s listing project on Euronext Milan and, if the conditions are right, on the Star segment, remains valid and confirmed for the first half of this year, market conditions permitting,” its CEO Andrea Sasso said in an interview with WWD in March. “The IPO is a tremendous pull factor for our companies, which will help bring in new talent and top-level managers,” he added.
Earlier this year, the group reported that its adjusted net profit almost doubled in 2022, reaching 25.5 million euros, compared to 13.3 million euros in 2021. Sales rocketed 84.8 percent on a pro-forma basis to 266.5 million euros. Italian Design Brands’ adjusted earnings before interest, taxes, depreciation and amortization rose 111 percent to 49.2 million euros in 2022, with a pro-forma margin of 18.5 percent, up from 16.2 percent in 2021, IDB said.
In June 2022, IDB acquired the majority of Gamma Arredamenti International, an Italian company that specializes in the production of upholstered furniture. In an operation that was finalized earlier this year, IDB entered into the kitchen and systems sector with a majority stake in Cubo Design, an Abruzzo, Italy-based company that owns the Binova and Miton Cucine brands, specializing in the production of modular kitchens and systems.
Its luxury contract business surged 73.6 percent in 2022 to 68.3 million euros, while its furniture business rose 39.6 percent to 117 million euros on a pro-forma basis. The company has said that it will continue to pursue a growth strategy through M&A activity, with the objective of consolidating its international presence by steadily integrating new companies.
IDB and Italy’s largest gambling group Lottomatica are among the only companies preparing for a market listing this year despite market turmoil. Lottomatica is expected to commence trading on Wednesday.
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