Italian luxury brand Golden Goose said that it plans to hold an initial public offering (IPO) on the Milan stock exchange consisting of existing shares held by Astrum, its sole shareholder, and newly issued shares stemming from a capital increase. The brand will use the proceeds of the capital hike to reduce its debt. The offering will represent a minimum of 25 percent of its share capital as required by the Euronext Milan stock exchange.
The primary tranche, or newly issued shares, will amount to €100 million. The total number of shares of the offering, including those sold by Astrum as a secondary tranche, as well as all other terms, will be determined before the IPO’s launch. The offering is reserved for qualified investors and will also include an overallotment option granted by Astrum to the joint global coordinators. Golden Goose expects the listing to take place in June.
The Italian company intends to use all of the proceeds from the offering, along with borrowings under new credit facilities and available cash, to fund the early redemption or repayment of its outstanding floating rate senior secured notes due 2027. It also plans to refinance any outstanding amounts and discharge a super senior revolving credit facility agreement and all liabilities under the inter-creditor agreement relating to the 2027 notes and existing revolving credit facility on or around the first trading date of its shares on Euronext Milan.
Golden Goose entered into a senior facilities agreement consisting of a €310 million term loan and a €150 million multicurrency revolving credit facility. As of March 31, the pro forma net debt post IPO, including the €100 million capital hike, will be €433 million, including leases under the IFRS 16 account rule, representing a leverage of 2.1 times, or €264 million pre-IFRS.
In 2023, Golden Goose posted net revenues of €587 million and an adjusted Ebit margin of 25.4 percent. Capital expenditure totaled 6.4 percent of net revenues, and net leverage post-IFRS16 was 2.4 times. The brand expects sales of about €1 billion and an Ebit margin ”consistent with historical levels” in 2029. Capital expenditure is between 7 percent and 8 percent of net revenues, and net leverage post-IFRS16 is between 1.0 and 1.5 times.
Golden Goose has 191 stores in Asia-Pacific, Europe, the Middle East and the Americas, including six duty-free stores, 28 shop-in-shop stores and ten outlets.
