Super-Star Sneaker Maker Golden Goose Postpones IPO Amid Market Turmoil

By Adria Calatayud

Italian fashion company Golden Goose, the maker of Super-Star sneakers worn by celebrities including Taylor Swift, postponed its initial public offering, citing European market volatility.

The decision by the company, which was slated to start trading in Milan later this week with a valuation of up to $2 billion, marks a setback for a renascent European IPO market that had seen activity pick up in recent months.

Golden Goose said late Tuesday that the current market environment isn't the right backdrop to go public. The significant deterioration in market conditions after European Union elections and the calling of a legislative election in France hurt European markets and the luxury sector in particular, it said.

"An IPO for Golden Goose will be reassessed in due course," it added.

Last week was the Stoxx Europe 600 index's worst since October, after results of European Parliament elections this month and French President Emmanuel Macron called a snap election, raising fears of political instability. Italy's FTSE MIB is down 3.9% since the European elections.

Golden Goose targeted a valuation ranging from 1.69 billion to 1.86 billion euros, (between $1.82 billion and $2 billion) based on its IPO price range. It had planned to raise EUR100 million from an offering of new shares, with shareholder Astrum--an entity controlled by private-equity group Permira--offloading additional shares for up to EUR458 million.

The company said it received strong support from investors as part of the process and that books for the IPO were covered shortly after the offer opened.

News of the IPO postponement came after Bloomberg reported Tuesday that Golden Goose had set the price of its IPO at EUR9.75 a share, at the lower end of its target range of EUR9.50 to EUR10.50 share.

European IPO activity showed signs of a revival so far this year, with the listings of companies such as Jean Paul Gaultier owner Puig Brands in Spain, skincare giant Galderma Group in Switzerland and buyout group CVC Capital Partners in the Netherlands.

However, Golden Goose isn't the first company to revise its listing plans. Last week, U.K. property investor Special Opportunities REIT called off an IPO after investor demand fell short of its expectations.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

June 19, 2024 01:57 ET (05:57 GMT)

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