MILAN (AFX) - Poltrona Frau SpA, the Italian luxury furniture manufacturer, plans to use the proceeds from its initial public offering to reinforce its international network.
Speaking at the company's IPO presentation in Milan, CEO Giuliano Mosconi said that after the recent acquisitions of the furniture companies Cappellini SpA and Cassina SpA, the group's acquisition phase was over.
'We must now devote resources to international development,' Mosconi said.
Poltrona Frau, which is present in 65 countries, wants to take its market share in the global luxury furniture segment to 6.0 pct from 4.7 pct.
The group intends to open 30-35 stores from here to 2008, mostly for the Poltrona Frau brand and mostly in Italy.
But the company said it intends also to strengthen its logistical capacity and strengthen its operations on foreign markets. Japan is a key market, but the company will also focus on Germany, the US and emerging markets like the Arab Emirates, India and China.
In these countries, the company intends to create joint ventures and co-branding initiatives with major luxury names such as Ferrari, LVMH and Dior.
Mosconi said that over the next few years revenues should grow 15 pct to reach 370-400 mln eur in 2008 while the EBITDA margin should grow to around 15 pct in 2008 from 9 pct in 2005.
The company added that it plans to distribute 30 pct of its net profits in dividends.
Poltrona Frau's IPO, which got under way today, will conclude on Nov 10. The company intends to float 35.08 pct of its capital, rising to 38.69 pct if the over-allotment offer is taken up. The shares have been priced between 1.8 eur and 2.2 eur for an enterprise value of 355-410 mln eur.
Of the 49.116 mln shares on offer, 8.916 mln are new issuance while the rest is being sold by investment company Charme Investments SCA and Franco Moschini SpA. Charme currently owns 51 pct of Poltrona Frau while Moschini holds 10 pct.
Global coordinators in the operation are Unicredito Italiano SpA's investment banking division UniCredit Banca Mobiliare SpA and Merrill Lynch International. stephen.jewkes@afxnews.com pw/sj/joy COPYRIGHT Copyright AFX News Limited 2006. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
© 2006 AFX News
