Milan
The trouble in trainers: British private equity firm Permira has shelved its €600m initial public offering (IPO) of Italian luxury sportswear brand Golden Goose because of the “significant deterioration in market conditions” amid the political uncertainty in Europe. The IPO in Milan had been lauded as one of the highlights of 2024 with a €3bn enterprise value. But the IPO faced headwinds from “the 3Ms” – Doc Martens, mid-cap status and French president Emmanuel Macron, says Craig Coben in the Financial Times.
The memory of the disappointing London IPO of Doc Martens in 2021 lingers, while Golden Goose shares had been priced near the bottom of their range. Mid-cap IPOs, as Golden Goose’s would be, have less margin for error, and demand greater price concessions. The deal size may also have been too large, leading to a lack of fundamental demand. Macron’s snap parliamentary election also hasn’t helped, causing a sell-off in European equities.
Ultimately, the withdrawal from the IPO may have spared investors from immediate losses and raised questions
