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Versace Prepping for the IPO Runway

Offerings of luxury operators, like KORS, might have been the spark


Luxury powerhouse Versace is in the early stages of preparing for an IPO, according to a report from Bloomberg, and given its mega brand and the growth of the affluent across the globe, a deal should have easy times finding interested buyers.

However, it appears that the first stage in Versace’s financing process will be a private sale of stock, followed by an initial public offering in the next three to five years.

In other words, no rush.

Versace, founded by Gianni Versace, got its start back in the late 1970s. Since then, the company has gone on to be one of the luxury fashion world’s top players in clothing, accessories, and even home furnishings.

While Versace’s business ran into serious problems in 2001 to 2002, it was only temporary, and the company appears to be growing at double-digit rates.

A possible spark for talks about a Versace IPO is the highly successful offering from Michael Kors (KORS) in December 2011. The company has seen shares clock an impressive 280% since then.

The largest equity holder is Allegra Versace, Gianni’s niece. She inherited a 50% stake when he died in a tragic shooting in 1997, and thus will have the ultimate decision on the timing of an IPO.

Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO StrategiesAll About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media,

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