Ahead of its initial public offering in Milan, Golden Goose Group said Tuesday the price range of its shares has been set between 9.50 and 10.50 euros. This implies a market capitalization of approximately 1.69 billion and 1.86 billion euros for the Italian company. The company also revealed that the first day of trading is expected to be June 21.
The offer period is expected to start on June 13 and end on or around June 18 and the final offer price is expected to be published on June 19.
The IPO is aiming at strengthening the group’s capital structure, allowing operating investments and reducing the company’s debt, which last year amounted to 480 million euros.
Thirty percent of capital will be floated by the current sole shareholder of the company, Astrum S.a.p.A. of Astrum 4 S.r.l. & C. In 2020, the company was acquired by the private equity fund Permira from the Carlyle Europe buyout fund. The price tag was 1.28 billion euros.
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Funds advised by Invesco Advisers Inc. have undertaken to acquire shares at the final offer price, for an amount of 100 million euros, acting as cornerstone investors. Invesco Advisers, Inc. is the principal U.S. investment advisory subsidiary of investment management firm Invesco Ltd. and has previously made numerous investments on behalf its advisory clients in the luxury goods space. Invesco Ltd. lists approximately $1.66 billion in assets.
The listing on Euronext Milan remains subject to obtaining the required approvals from Borsa Italiana and watchdog CONSOB.
Sources close to the IPO process said it was key to note the engagement of Invesco as “a cornerstone investor” and that Golden Goose is “having a conservative approach and actively listening to the market’s feedback. The pricing is constructive, to have a strong aftermarket.”
A source also underscored that the management is committed, “with a long-term view,” and that “the listing is only a step in the company’s growth.” This echoes CEO Silvio Campara’s remarks to WWD last month, saying the listing was “the natural destination” for the company, “a new part of the journey, and certainly only the starting point, not the arrival,” and that he would re-invest all proceeds into the company and stay on in his role.
There will be a lock-up of 180 days from the listing date for the selling shareholder and the company, and 360 days for selected members of management.
In a statement, Golden Goose listed its main assets, starting from a unique positioning in a growing market, a customer-centered strategy with an engaged community of 1.5 million members behind the brand to the expansion of its direct-to-consumer channels since opening its first store in Milan in 2013. DTC accounted for 74 percent of revenues last year and comprises a network of 195 directly operated stores.
Campara has repeatedly touted the company’s vertically integrated Made in Italy production, as sneaker are all hand-made by artisans in Italy. To further tighten control over production, Golden Goose acquired two of its primary suppliers, Italian Fashion Team S.r.l. and Calzaturificio Sirio S.r.l., enabling it to internalize production of approximately 50 percent of volumes sold in 2023.
Golden Goose’s signature sneaker is the Superstar, introduced in 2007, and the brand has since launched more than 20 new models, but Campara is expanding its product offer with ready-to-wear and accessories.
Sustainability has also been a pillar of the business, and Golden Goose has opened five Forward Stores so far, which offer repairs on products from any brand, plus remake, resell and recycle services.
The group has been ranked first in the footwear sub-industry according to Sustainalytics’ ESG Rating, as of November 2023.
In the statement, Golden Goose, which was established in 2000, said the company is pursuing a growth strategy based on five pillars: Continue nurturing leadership in sneakers; amplify brand awareness globally; evolve the group’s global presence; enhance the brand’s experiential journey, and selectively leverage new categories.
From 2021 to 2023, Golden Goose reported a 23 percent compound annual growth rate in revenues and an earnings before interest, taxes, depreciation and amortization adjusted margin of around 34 percent last year.
In 2023, the company registered sales of 587 million euros, an increase of 18 percent compared with 500.9 million euros in 2022, an adjusted EBITDA of 200 million euros, increasing 19 percent, and an adjusted operating profit 149 million euros, growing 22 percent.
In the first quarter of the year, revenues amounted to 148 million euros, up 11 percent compared with the same period in 2023, and an adjusted EBITDA of 54 million euros, growing 17 percent compared to the first quarter last year.
