The Ermenegildo Zegna Group is now a public company.
CEO Ermenegildo “Gildo” Zegna rang the opening bell at the New York Stock Exchange (NYSE) on Monday morning as the Italian luxury brand joins the stock market under the ticker symbol “ZGN.” Gildo was joined by Zegna Board member Paolo Zegna, artistic director Alessandro Sartori, designer Thom Browne, among others at the bell ringing.
“Today marks a monumental milestone for Zegna and is the beginning of an exciting and pivotal new chapter in our 111-year legacy,” Gildo Zegna said. “What began as a wool mill built by my grandfather has now become a publicly traded, modern luxury group with a one of-a-kind manufacturing platform, sophisticated digital operations and global scale and reach.”
Shares started trading shortly after 9:30 a.m. on Monday at $10.30 and are up to $12.42 per share as of Tuesday morning.
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This moment was made possible through a new business combination with Investindustrial Acquisition Corp. Through this deal, the Zegna family will continue its long-term stewardship of the company through an ownership stake of nearly 66%. Based on the transaction value, the merged entity is expected to have an initial enterprise value of $3.1 billion and an initial market capitalization of $2.4 billion.
“We are well positioned to accelerate the successful strategies of the Zegna Group’s two core brands, Zegna and Thom Browne, while also continuing to build upon our heritage, our ethos of sustainability, and the unique craftsmanship that has made our name synonymous with excellence and luxury around the world,” Gildo Zegna added. “We will continue to meet our clients’ changing needs while working to attract new, younger clients through exciting collaborations and digital innovation across the Group.”
Zegna delivered strong sales and profitability for the first half of 2021, with revenues up 50% year-over-year. The IPO is expected to allow Zegna to further expand globally and continue to build its manufacturing pipeline through acquisitions.
Ahead of the IPO, Zegna also debuted a new logo. It features an all caps “ZEGNA” in a modern font beneath two orange horizontal stripes, which, according to the company, are symbolic of the road its founder constructed in the Italian Alps over a century ago in order to reach his wool mill.
