Golden Goose is preparing the biggest IPO in Italy since the last year

Italian luxury sports footwear maker Golden Goose Group SA will launch an initial public offering (IPO) on the Milan Stock Exchange, which is poised to become Italy's biggest listing in the past year, according to Bloomberg.

Golden Goose aims to raise 100 million euros ($108 million) from the sale of new shares, and its owner, private equity firm Permira, plans to dispose of an unspecified amount of existing securities, the company said last week.

Although the size of the offer has not yet been determined, at least 25% of the company will be listed, and Bloomberg News reported prior to the company's announcement that Golden Goose could be valued at around three billion euros, including net debt. This indicates that the IPO will be the largest in Italy since the 599 million euro listing of gambling company Lottomatica SpA in May last year.

Golden Goose thus joins private equity giant CVC Capital Partners Plc and Spanish beauty group Puig Brands SA who have chosen to list in Europe this year amid a stock market rally to record highs. European IPO volume fell in 2022 and 2023 as central banks raised interest rates to curb inflation, dampening investors' appetite for risk.

But the market has recovered, with companies raising nearly $13 billion through IPOs this year, more than double the amount from the same period last year. In the US, listings revenue totals $17.2 billion in 2024.

Golden Goose is testing the market at a time when the luxury business is slowing down. Kering SA said last month that sales of its Gucci brand fell 18 percent in the first quarter due to weaker demand in China. Bigger rival LVMH reported a 2 percent organic rise in fashion and leather goods sales in the first quarter, up from 18 percent growth a year earlier.

Golden Goose plans to use the IPO proceeds to pay down debt. The company is targeting net sales of around one billion euros by 2029, up from 587 million euros last year.

The company will also invest in new markets to tap into a younger customer base, says chief executive Silvio Campa. About 90% of the company's business comes from the US, Europe, China and Japan, where the average age of consumers ranges from 36 to 51. The new markets the company is targeting have a much younger demographic, Silvio Campa said, citing South America, Africa, the Middle East and India, where the average age ranges from 19 to 24. Another strategy to increase sales will be customizing shoes for customers.

The Golden Goose IPO will be handled by Bank of America Corp., JPMorgan Chase & Co., Mediobanca SpA and UBS Group AG.