Due to a “significant deterioration” in market circumstances brought on by the European Parliament elections and the proposal for a snap election in France, the Italian sportswear company Golden Goose decided to postpone its initial public offering (IPO) in Milan.

The goal of Golden Goose, which is well-known for its worn-out sneakers that have gained popularity thanks to superstars like Taylor Swift, was to reach a market valuation of up to 1.86 billion euros ($2 billion).

The business stated in a statement on Tuesday that the “current market backdrop is not the right environment to take the company public” and that an IPO will be reevaluated at a later time.

According to Golden Goose, the European markets were affected, as well as the luxury sector specifically, by the elections for the European Parliament and the announcement of a general election in France.

It emphasised that investors had been “engaged widely” in the brand’s first public offering (IPO). Friday was scheduled to be the first trading day.

President Emmanuel Macron of France announced a sudden national election after the far-right National Rally (RN) party received almost 31% of the vote in the most recent European Parliament elections.

In response to growing nationalist fervour, protestors across France staged nationwide demonstrations in response to the RN party’s historic achievements. The French CAC 40 saw its biggest weekly loss since March 2022 last week after losing more than 6.2%.

Permira, a private equity firm, owns Golden Goose. Last week, Golden Goose revealed that Invesco, a cornerstone backer, had contributed 100 million euros to the IPO.

(Adapted from EuropeNews.com)