Golden Goose Boosts Europe IPOs in $600 Million Shoe Listing

(Bloomberg) -- Golden Goose Group SpA and its shareholders are seeking to raise about €558 million ($600 million) in the luxury sneaker brand’s initial public offering, in a further boost to Europe’s listings resurgence.

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The company and its owner, private equity firm Permira, plan to sell about 30% of its share capital for €9.50 to €10.50 each, according to a statement. The IPO will be Milan’s biggest since at least the €599 million sale by gambling company Lottomatica SpA in May last year and will give Golden Goose an implied market value of €1.7 billion to €1.9 billion.

Bloomberg News reported earlier that Golden Goose could be valued at about €3 billion including net debt.

The Italian brand, whose customizable, star-emblazoned shoes retail for around $450 and have a busy second-hand market, has been a hit among celebrities from Selena Gomez to Taylor Swift.

The shoemaker has already passed through the hands of three global investment groups. Carlyle Group bought the company from Ergon Capital Partners SA in 2017, sparking its expansion into the US and China. Three years later, Permira bought Carlyle’s majority stake.

Golden Goose is issuing about 10 million new shares, while Permira could sell as many as 43.6 million existing shares at the top of the price range. Invesco Advisers Inc. has agreed to be a cornerstone taking a €100 million stake at the final price.

If there’s demand to allocate additional shares under a so-called green shoe option, the deal size could increase to about €642 million.

Golden Goose plans to use the IPO proceeds to pay down debt. The company is targeting net sales of about €1 billion by 2029, up from €587 million last year.

The Italian company joins buyout giant CVC Capital Partners Plc and Spanish beauty group Puig Brands SA in moving ahead with listing plans in Europe this year, boosted by the stock market’s rally to record highs. IPO volumes sank in 2022 and 2023 as central banks raised interest rates to cool inflation, denting investors’ appetite for risk.

The European listings market has rebounded, with the total value of IPOs trading in the region so far this year more than doubling to almost $13.3 billion compared with the same period in 2023, according to data compiled by Bloomberg.

Bank of America Corp., JPMorgan Chase & Co., Mediobanca SpA and UBS Group AG are arranging the offering.

--With assistance from Flavia Rotondi.

(Updates with shoes in fourth paragraph, past owners in fifth.)

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