China state money puts wind in Ferretti IPO sails

Ferretti SpA

31/03/2022 02:56

(The author is a Reuters Breakingviews columnist. The opinions
expressed are their own. Refiles to add stock code.)
    HONG KONG, March 31 (Reuters Breakingviews) - The answer to
Ferretti  9638.HK  Chief Executive Alberto Galassi’s baffling
confidence https://www.ft.com/content/a13429b9-632c-4a0e-b05a-3256ec294fca?FTCamp=engage/CAPI/app/Channel_Refinitiv//B2B
 in its Hong Kong share sale lies in the South China Sea. The
yacht maker is going public on Thursday despite seemingly ever
worsening choppy waters: Western sanctions are hitting
boat-loving Russian oligarchs; President Xi Jinping’s “common
prosperity” drive has prompted the country’s own super-rich to
lay low; and new Covid-19 outbreaks are depressing Chinese
consumer spending and delaying initial public offerings.
 urn:newsml:reuters.com:*:nL2N2VX045
    But China's palm-tree-laden island province of Hainan is
coming aboard. It’s the ultimate owner https://www.ferrettigroup.com/portals/4/Investor-relations/Listing-documents/Prospectus/E_886756_FSPA_0320_1200_ESS.pdf
 of entities buying a large chunk of the 70% of Ferretti’s IPO
going to cornerstone investors. On Friday authorities there
passed new rules to promote the yacht industry, part of their
aim to boost tourism and pivot away from real estate.
    Ferretti priced its IPO on the lower end of the range,
valuing it marginally higher than rival Sanlorenzo’s  SNL.MI  10
times adjusted EBITDA multiple for the next 12 months. Hainan
officials will be hoping it’s a seaworthy financial vessel. (By
Yawen Chen)
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Stubborn discount    https://tmsnrt.rs/3uvGLCU
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 (Editing by Antony Currie and Katrina Hamlin)
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