Italian luxury brand Prada has received offers worth five times the £1.6bn it is looking for to sell off 17% of the company.
According to Reuters, following the outlining of its IPO offer at the weekend, Prada’s flotation could be set to value the company at $15.8bn (£9.7bn).
Shares will be priced between $4.69 (£2.88) and $6.17 (£3.79) each with the company selling 423.3 million shares, meaning that Prada could raise $2.61bn (£1.60bn) for just 17% of its capital.
The company will start trading on the Hong Kong stock exchange on June 24 with the final share price decided on June 17.
Prada chief executive officer Patrizio Bertelli said: “Our decision to go public in Hong Kong shows our interest in Asia today and in Asia as it will be in the future. I’m confident we’ve made the right decision.”
Prada will continue its road show it started last week with presentations in Singapore, Hong Kong, London, Milan and New York. It was previously estimated that the IPO could see the company valued at £9.3bn Prada has won strong support for its IPO so far.
Proceeds from the stock market listing will help Prada open 80 directly operated stores this year, with 25 situated in Asia. The company has 319 boutiques worldwide. Other goals for the company include strengthening its global coverage, capturing the “high growth potential” of luxury label Miu Miu and improving margins and profits.