Golden Goose’s Listing Approved on Euronext Milan by Borsa Italiana and CONSOB
Borsa Italiana and Italy’s watchdog CONSOB have approved the listing of Golden Goose on the Euronext Milan, removing all obstacles to its initial public offering. The launch date of the IPO has initially been set for June 21, 2024. With the price range for Golden Goose shares established between 9.50 euros and 10.50 euros, the company’s market capitalization stands between 1.69 billion euros and 1.86 billion euros.
The offer period is expected to commence today and end around June 18, with the final offer price set to be announced on June 19. The purpose of the IPO is to strengthen the company’s capital structure, reduce its debt and facilitate operational investments. As of last year, the company’s debt was 480 million euros.
Yanmei Tang, an analyst at Third Bridge, says “Golden Goose has built a strong reputation in luxury sneakers, and its loyal customers have helped it stay strong over the past year and a half, even as inflation and uncertainty hit other brands hard. They broke new ground in the sneaker world by offering personalized laces as an add-on, rather than just tossing them in the box. It’s a quirky yet smart move that highlights the power of personalization.”
Third Bridge experts are optimistic regarding Golden Goose’s margins, seeing room for additional sneaker price increases. “Additionally, the acquisition of their largest manufacturer in Italy gives them a strong edge in cost control,” added Tang, citing the company’s vertically integrated Made in Italy production. All Golden Goose sneakers are handmade in Italy by artisans and to further tighten control over production, the company purchased two of its main suppliers, thus enabling it to internalize production of approximately 50 percent of volumes sold by 2023.
“Golden Goose has massive growth potential if they expand beyond sneakers into apparel and accessories. However, our experts say their brand positioning and messaging need to be clearer,” Tang further comments.
Senior private capital analyst at Seattle-based PitchBook, Navina Rajan, highlights the listing of Golden Goose as another example of recovery in the PE-backed listings market, particularly within the consumer beauty segment. Rajan points out Puig’s significant IPO, which has added to the testing points for market sentiment, and asserts that the positive performance of other listings this year such as Galderma and CVC, presents favorable proof points for most listings from a full European IPO pipeline, where Golden Goose fits the profile – a high-margin business priced within a reasonable range versus comps.
Last year, Golden Goose was acquired by the private equity fund Permira from the Carlyle Europe buyout fund for a price tag of 1.28 billion euros. Thirty percent of Golden Goose capital will be floated by the current sole shareholder of the company, Astrum S.a.p.A. of Astrum 4 S.r.l. & C. Invesco Advisers Inc. have agreed to acquire shares at the final offer price, for an amount of 100 million euros, acting as cornerstone investors.
Post-IPO, Chief executive officer Silvio Campara will continue in his role as well as an investor. There will be a lock-up of 180 days from the listing date for the selling shareholder and the company, and 360 days for selected members of management.
In 2023, the company registered sales of 587 million euros, an increase of 18 percent compared with 500.9 million euros in 2022, an adjusted EBITDA of 200 million euros, increasing 19 percent, and an adjusted operating profit 149 million euros, growing 22 percent. During the first quarter of this year, revenues amounted to 148 million euros, up 11 percent compared to the same period in 2023, and an adjusted EBITDA of 54 million euros, growing 17 percent compared to the first quarter last year.