MILAN (Reuters) - Loss-making Italian lingerie brand La Perla will list in Paris this week in the hope that it can raise its profile and possibly lure other investors as it prepares to buy more luxury brands.
The company, now owned by German investor Lars Windhorst, will not sell any new or existing shares nor raise fresh capital by going public but group chief executive Pascal Perrier told Reuters it planned to buy more luxury brands in the future.
La Perla will float on Euronext’s growth market segment, which has looser regulatory requirements, through a direct listing procedure.
It will have a market capitalization of 473 million euros - in line with the company valuation made when it raised 23 million euros in May through a private placement.
“The listing is a first step. The intention is to further invest in the luxury sector by acquiring other luxury brands, not necessarily in the underwear segment,” Perrier told Reuters adding no targets have yet been identified.
La Perla’s revenues on a like-for-like basis fell 20.7% to 106.2 million euros in 2018, with an operating loss of 91.3 million from a loss of 179 million euros a year earlier. The company aims to “break-even in the mid-term,” according to a document published on its website.
Windhorst’s investment firm Tennor Holding bought struggling La Perla from an Italian entrepreneur in February 2018 and a few months later appointed Perrier, previously a top executive at Burberry’s, to run it. At the time of the acquisition, La Perla’s assets were valued at 76.6 million euros.
Shares are expected to start trading on Friday.
Reporting by Claudia Cristoferi and Elisa Anzolin;Editing by Elaine Hardcastle