British luxury shoemaker, Jimmy Choo is heading for a public offering in London this month amid rising demand for iconic footwear, which could value the company at $1.1 billion. Jimmy Choo’s decision to float on London stock exchange instead of Hong Kong, is symbolic of the brand tracing its roots back to 1996 when it setup its first ever store on Motcomb Street in London. The potential float will help spur a wave of initial public offerings in the UK, which has witnessed its most buoyant first quarter since 2007.
In 2011, a number of luxury brands including Prada went from privately-to-publicly-owned to increase the scale and reach of the label, particularly in Asia. Prada, despite a stellar rise since listing on the Hong Kong exchange felt the pressure of a luxury sector slowdown in Asia Pacific, which is why the city of London has beaten Hong Kong to host the largest IPO of this year.
Jimmy Choo, which was acquired by private-equity investors three times before being bought by JAB in 2011, plans to sell a 25 percent stake and has hired Bank of America Corp. to seek a valuation of about $ 1 billion. The brand, famous for its handmade shoes and Carrie Bradshaw’s penchant with Choos in Sex and the City, has grown by about 30 per cent after Labelux acquired it from its namesake founder Tamara Mellon in 2011. In our view, the brand is a source of economic returns. We have no doubt that this potential floating will be able to raise funds to further expand the coveted brand and eventually mull floatation in Asian market.
[Via – Telegraph]