$243 Million Raised By Yacht Maker Ferretti In Its Hong Kong IPO

Ferretti Group, an Italian luxury yacht manufacturer, has priced its shares at HK$22.88 each, the lower end of its projected range, in order to generate HK$1.9 billion ($242.75 million) in its Hong Kong initial public offering, according to Refinitiv’s IFR service on Friday.

The company sold 83.58 million shares, or around 25% of its total equity capital, valuing the company at little less than $1 billion. The offer also includes a 15% greenshoe option.

It has established an indicative price range of HK$21.82–HK$28.24 per share for the float, braving unstable markets after a failed IPO effort in Milan in 2019.

The first day of trading on the stock exchange is slated for March 31.

Ferretti, whose clients include British fashion designer Jimmy Choo and former football star David Beckham, is the market leader for yachts ranging in price from 4 million euros to more than 20 million euros.

Weichai Group, a Chinese corporation, owns 11 per cent of the group, while Pietro Ferrari, son of the eponymous luxury sports car company’s founder Enzo Ferrari, owns 11 per cent. Ferretti manufactures under the Pershing and Riva brands and controls six shipyards in Italy.

Sunshine Insurance, Sanya Development, Hainan Free Trade Port Fund, Hainan Financial, and Haifa Holding, five Chinese cornerstone investors, have invested a total of $129.5 million. Cornerstone investors are subject to a six-month lock-up period.

The IPO took place while Hong Kong is experiencing significant market volatility as a result of the Russian-Ukrainian conflict, rising global interest rates, and the continued fallout from continual Chinese regulatory change.

According to Refinitiv statistics, Hong Kong’s Hang Seng Index is down 6.2 per cent for the year and 3.4 per cent in March.

Ferretti stated that it is convinced that the luxury boat sector would be able to endure any global economic crisis caused by geopolitical events that are developing.

It had previously stated that it projected the worldwide yacht market to increase at a rate of 7 per cent per year, reaching 27 billion euros in 2025, with demand growing mainly in the Asia Pacific area.

(Adapted from USNews.com) 


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