Luxury Shoe Brand Jimmy Choo Lower IPO Issue Price Cap

Affected by several major European failures this year, investors have reduced the appetite of new companies, and the luxury shoe brand Jimmy Choo has adjusted the IPO price range accordingly.

Bankers say that the IPO price range of Jimmy Choo will be adjusted from the initial 140-180 pounds to 140-160 pounds per share, but they also indicated that the final price of the IPO will fall completely within the new range.

The Choo brand was founded in 1996 by the "Vogue" accessories editor Tamara Mellon (top right) and the Malaysia designer Jimmy Choo (left). It belongs to the Joh family A Benckiser, the investment organization of the Reimann family. It is planning to sell 25% of the brand share in October.

The shoes of Jimmy Choo are popular for the role of Carrie Bradshaw Bradshaw in Sex and the City (sex and city).

After several rounds of change in private equity funds, the company was sold to JAB.

Jimmy Choo, the designer of the brand name, left the company in 2001. Mellon also left when JAB came in three years ago.

According to Jimmy Choo's IPO announcement, the company's total revenue in the first half of 2014 was 1.502 billion billion pounds (about 1 billion 500 million yuan), an increase of 9.4% according to the fixed exchange rate, and the adjusted profit margin before tax depreciation was 27 million 600 thousand pounds.

Yes

People revealed that company owners prefer to issue the price at the upper limit of 160 per share, because they want to release such a signal, "they are not drying up the last value of the brand."

Issuing at the ceiling price can enhance investor confidence.

In recent years, with the popularity of Western brands in developing countries, the unique "niche" luxury goods companies have become a hot investment, but the sudden decline in luxury consumption in China has made the luxury industry feel a chill.

In the early part of this year, quite a few companies flocked to the market, but the debut was disappointing, the market enthusiasm began to dissipate, investors became cautious, and some companies had to temporarily abandon the listing plan.

For example, after the listing of German fashion Zalando and Rocket Internet, the electricity supplier investment company fell sharply.

Spie, a French engineering group, withdrew its 12 billion listing financing plan last week.

On Monday, Bill Ackman, a hedge fund Pershing Square, fell 7.8% in Holland.

The issue of Jimmy Choo downgrades confirms the cautious attitude of investors after several twists and turns, and reveals that bankers are eager for the stock to perform well after listing.