The Italian Brand Cites European Market Volatility for the Decision to Delay Its High-Profile IPO
The high-profile initial public offering from Golden Goose, which was initially scheduled for this Friday, has been postponed due to unfavorable market conditions. In a statement released on Tuesday, the company attributed the decision to the recent volatility in European markets. Although no definitive timeline has been provided, market sources speculate the IPO could potentially be delayed until 2025.
“The book of demand was covered across the price range from the first hour of bookbuilding and is well oversubscribed across the range,” read the company’s statement. Dismissing concerns related to the market’s response, Golden Goose highlighted the positive reception and widespread investor engagement they have encountered during the IPO process.
However, European market performance and particularly the luxury sector, have been adversely affected by recent political turmoil including European Parliament elections and the announcement of a general election in France. Nevertheless, Golden Goose continues to fare well despite these challenging conditions. Management and shareholders have expressed that they believe the present market circumstances are not conducive for the company’s public listing, as the primary focus remains ensuring a successful IPO with robust, long-term aftermarket performance.
Earlier in the day, a Luxury Goods World Market Study for Spring 2024 predicted a slowdown in luxury revenues for the year. The report, presented by Bain & Company and Altagamma in Milan, anticipates a 4% maximum increase or a flat year due to dampened consumer confidence in key markets like China and the U.S.
Golden Goose had received approval to list on Euronext Milan from Borsa Italiana and Italy’s CONSOB last week. The price range for Golden Goose shares was reportedly set between 9.50 and 10.50 euros, implying a market capitalization ranging from 1.69 billion to 1.86 billion euros.
Approximately 30% of Golden Goose’s capital was to be floated by the company’s current sole shareholder, Astrum SapA of Astrum 4 Srl & C. In 2020, Golden Goose was bought by the private equity fund Permira from the Carlyle Europe buyout fund for approximately 1.28 billion euros. Invesco Advisers Inc, acting as cornerstone investors, pledged to acquire shares at the final offer price to the tune of 100 million euros.
Golden Goose announced last week that its growth strategy will center on five key areas: continued leadership in the sneaker market, increased global brand awareness, expansion of global presence, enhanced brand experience, and the careful addition of new product categories.
Between 2021 and 2023, Golden Goose reported a compound annual growth rate of 23% in revenues. In 2023, the company reported sales of 587 million euros, representing an 18% increase on 2022’s 500.9 million euros. Adjusted EBITDA reached 200 million euros, a growth of 19%, and adjusted operating profit stood at 149 million euros, a 22% rise.