(Reuters) – The owners of down jacket maker Moncler are seeking to raise as much as 785 million euros ($1.06 billion) in a public share sale, term sheets showed on Wednesday.
Moncler, which started life as a ski jacket maker in the French Alps in 1952, is hoping to woo investors with strong growth prospects based on its global expansion plans and the popularity of its brand, particularly in emerging markets.
In the nine months to Sept. 30, Moncler sales were up 17.5 percent at 389 million euros, and up 22 percent at constant exchange rates.
The size of the goose down jacket maker’s offering could rise by as much as 15 percent to 672-785 million euros if it receives strong interest and the two main shareholders decide to sell more of their stakes through a greenshoe option.
At the bottom of its 8.75-10.2 euro per share price range, the deal will value Moncler at about 2.2 billion euros. The company is due to make its debut on Dec. 16.
Moncler is set to be the third company to start trading on Milan’s main market this year. Notebook maker Moleskine listed in April and freight forwarding company Savino del Bene is expected to list on Dec. 6.
Following the deal at least 26.7 percent of Moncler, which abandoned a previous attempt to float in 2011, will be publicly traded, the term sheets showed.
None of the proceeds will go to the company as the sale will be made up entirely of existing stock, with several shareholders taking the opportunity to reduce their stakes.
French investment firm Eurazeo, which bought 45 percent of Moncler in 2011, will sell 14 percent. Fellow owner, private equity group Carlyle, will sell around half its 18 percent stake, while Brands Partners, which currently holds 5 percent of the company, plans to cash in on 3.7 percent of the share capital.
The indicative price range values Moncler at about 10-12 times expected 2014 earnings before interest, tax, depreciation and amortization (EBITDA). The bottom of the range is roughly in line with industry leaders such as LVMH and Kering .
Company president Remo Ruffini, who bought the brand 10 years ago and has helped boost sales from 45 million euros in 2003 to 489 million euros in 2012, will retain his entire 32 percent stake to become the main shareholder after the float.