Jimmy Choo likely to be valued at $1.1 bn post listing
07 Oct 2014
Luxury shoe maker Jimmy Choo is on track to join London's main stock market next week with a valuation up to $1.1 billion, according to industry sources, who cited the initial price range quoted by banks arranging the sale, Reuters reported.
The company whose shoes costing several hundred pounds a pair are worn by celebrities across the world, is banking on its industry-beating sales growth and expansion plans in Asia in view of the turmoil in Hong Kong.
However, not all investors are convinced, and concerns are being voiced about the comparatively high proportion of revenues it invested in capital spending, as also its debt levels.
According to Andrea Gerst, who helps manage the Julius Baer Luxury Goods Fund with € 330 million under management, Jimmy Choo was a great brand with good growth potential but it had a high capital expenditure ratio and usually the company preferred fashion companies with stronger balance sheets.
Further given it was a small company, its growth rates were not amazing, relatively speaking, she added.
The share pricing is scheduled for 17 October with trading expected to start on 20 October, Reuters reported citing a source close to the matter.
Meanwhile, Bloomberg reported yesterday that JAB Holdings owned luxury shoe maker, was seeking to raise as much as £ 175 million in its initial public offering, according to a person with knowledge of the matter.
According to the person, the shoemaker was aiming for 25 per cent of its shares to be freely traded.
The company would join retailer SSP Group Plc (SSP) and lender TSB Banking Group Plc as it bid to sell shares in London's busiest market for IPOs since 2007, according to data compiled by Bloomberg.
The company which sells $1,995 Lust peep-toe sandals, was acquired by private-equity investors three times before JAB acquired it in 2011.
Jimmy Choo sells women's and men's shoes, handbags and accessories through over 100 stores worldwide.
