Golden Goose abandons its IPO

The instability of European stock markets triggered by the political chaos in France killed off the IPO originally planned by Italian company Golden Goose. On the eve of the new French parliamentary elections which could bring the far-right to power, the luxury sneaker specialist considers that financial market conditions were too deteriorated in recent weeks and it wasn't the right time to take on Piazza Affari.

However, this crucial moment for the company had been in the pipeline for a long time. The share price had already been set at a lower range of between 9.50 and 10.50 euros, and the Italian company had planned to sell around 10.5 million shares. The majority shareholder - private equity firm Permira, which took control of Golden Goose in 2020 - was to offer 43.6 million existing shares. The plan was ambitious: the Golden Goose IPO would have been one of the largest ever carried out in Milan's Piazza Affari.

While Golden Goose has announced an 18% increase in sales for 2023, the Italian company is targeting revenues of around one billion euros within five years, double the 587 million euros in sales recorded last year. The major financial operation was reportedly managed by JP Morgan Chase & Co, Mediobanca Spa, UBS Group AG and Bank of America Corp. Golden Goose intended to mop up its debt and strengthen its capital structure, but this has now been postponed, pending the results of the French elections scheduled for July 7.

The political upheavals in France have already led to a number of financial losses, including for some of the luxury goods companies listed on the stock exchange: the MSCI (Morgan Stanley Capital International) index for Europe fell by -2.8% this month; Burberry shares lost -4.8% of their value; LVMH fell by around -3% and Moncler by -6.7%.

Founded in 2000 in Marghera, near Venice, by Alessandro Gallo and Francesca Rinaldo, Golden Goose began its entrepreneurial adventure as a clothing and leather goods brand. Then, in 2007, the company launched its iconic "Super Star" shoe model. After going through the US investment fund Carlyle Group, Permira finally took control four years ago.