Golden Goose Postpones IPO
It was not to be.
The highly anticipated initial public offering of Golden Goose, expected to take place on Friday, has been postponed.
The company said in a statement released late Tuesday that the decision was made “as a result of European market volatility,” and that the IPO will be “reassessed in due course,” but no timing was provided, although a market source indicated it could be delayed until 2025.
The suspension was not related to the response from the market so far. “The book of demand was covered across the price range from the first hour of bookbuilding and is well oversubscribed across the range,” said the statement. “As part of the IPO process, the company has engaged widely with investors. The reception of the story has been very positive, with strong support across the investment community.”
However, “the significant deterioration in market conditions following European Parliament elections this month and the calling of a general election in France have impacted European markets performance and, in particular, the luxury sector.”
Given that Golden Goose, despite this context, continues to perform well, the management and shareholders “believe the current market backdrop is not the right environment to take the company public” as they have “always been determined to ensure a successful IPO for all stakeholders, with strong and sustainable aftermarket performance.”
Earlier in the day, Bain & Company’s Luxury Goods Worldwide Market Study — Spring 2024, presented with Altagamma in Milan, stated that luxury revenues are expected to slow down this year, seen flat or rising up to 4 percent, dragged down by dampened consumer confidence in key markets like China and the U.S. In the first quarter of 2024, the personal luxury goods market reported a negative performance down 3 to 1 percent in terms of market value, as China suffered from diverted spending as outbound tourism favored destination cities in Japan and Europe.
The admission to list on Euronext Milan was approved by Borsa Italiana and Italy’s watchdog CONSOB last week.
As reported, the price range of Golden Goose shares was set between 9.50 and 10.50 euros, implying a market capitalization of approximately 1.69 billion to 1.86 billion euros.
Thirty percent of Golden Goose capital was to be floated by the current sole shareholder of the company, Astrum SapA of Astrum 4 Srl & C. In 2020, the company was acquired by the private equity fund Permira from the Carlyle Europe buyout fund. The price tag was 1.28 billion euros.
Funds advised by Invesco Advisers Inc. undertook the acquisition of shares at the final offer price, for an amount of 100 million euros, acting as cornerstone investors.
Last week, Golden Goose, which was established in 2000, said the company is pursuing a growth strategy based on five pillars: continue nurturing leadership in sneakers; amplify brand awareness globally; evolve the group’s global presence; enhance the brand’s experiential journey, and selectively leverage new categories.
From 2021 to 2023, Golden Goose reported a 23 percent compound annual growth rate in revenues and an earnings before interest, taxes, depreciation and amortization adjusted margin of around 34 percent last year.
In 2023, the company registered sales of 587 million euros, an increase of 18 percent compared with 500.9 million euros in 2022, an adjusted EBITDA of 200 million euros, increasing 19 percent, and an adjusted operating profit 149 million euros, growing 22 percent.