Ferretti float may be back in same boat

Sanlorenzo SpA

24/01/2022 02:49

(The authors are Reuters Breakingviews columnists. The opinions
expressed are their own.)
    By Jeffrey Goldfarb and Lisa Jucca
    MELBOURNE, Jan 24 (Reuters Breakingviews) - After a bold
$1.2 bln valuation target sank its Milan IPO effort in 2019, the
Italian yacht maker owned by China’s Weichai is now sailing for
Hong Kong. Growth is buoyant, but luxury goods have charted a
patchy course on Asian bourses. It’ll be hard, again, to make a
splash.
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    CONTEXT NEWS
    - Ferretti Group on Dec. 24 unveiled its prospectus for an
initial public offering in Hong Kong, with CICC listed as the
sole sponsor. The Italian yacht maker is majority owned through
a complex web of holding companies by Chinese state-owned
enterprise Shandong Heavy Industry Group-Weichai Group, which
took control in 2012 in a 374 million euros agreement with the
company’s creditors.
    - In the nine months through Sept. 30, Ferretti’s revenue
increased 63%, to 693 million euros, from a year earlier. Net
profit more than quintupled to 32 million euros over the same
span.
    - The company aborted a planned IPO in Milan in October 2019
after deciding the listing price would have been too low.
The market for luxury yachts was estimated to be worth about 22
billion euros in 2021, according to Bain & Co and the Italian
luxury industry’s Fondazione Altagamma.

 (Column by Jeffrey Goldfarb in Hong Kong, Lisa Jucca in Milan.
Editing by Robyn Mak and Katrina Hamlin)
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