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Having already seen four previous attempts at an IPO thwarted by the post 9/11 market gloom and the 2008 global financial crisis, PRADA, the Italian family-owned luxury goods and fashion powerhouse and its leaders were acutely aware that floating company shares on a stock exchange would be a transformational event.
Why was PRADA intent on going public? And why do so on the Hong Kong Stock Exchange? What steps would it have to take in the few months until the IPO? What price might it expect its shares to sell for?
The PRADA case also touches upon issues that go beyond finance - the dynamics of a large family business, the importance of new markets, notably China, for Western luxury brands, and so on. Not only are these different dimensions relevant in themselves but they also help put the company’s financial decisions into perspective.
Join Denis Gromb, the Antin I.P. Chair Professor of Finance at HEC Paris in his award winning “Prada’s Hong Kong IPO” case study and:
Denis Gromb is the Antin I.P. Chair Professor of Finance at HEC Paris. He graduated from Ecole Polytechnique, where he also obtained a Ph.D. in Economics. His main research interests include corporate finance, corporate governance, banking, the economics of organizations and financial markets dysfunctions. His articles have been published in leading academic journals in Economics and Finance.