Jimmy Choo Becomes First Luxury Shoe Brand to Go Public
Luxury shoemaker Jimmy Choo became the first luxury shoe brand to go public. On Friday the company listed about a quarter of its shares on the London Stock Exchange for 140 pence ($2.25) Following its listing, Jimmy Choo will have a market capitalization of 545.6 million pounds ($874 million), thats $63 million more than Labelux paid to acquire the company in 2011.
The share price rose to 142.5p in early trading Friday, as the UK's FTSE market appeared calmer after a rocky week.
“Today’s announcement marks an important milestone for Jimmy Choo and recognizes not only the appeal of our high-quality products, but also confidence in our ability to outperform the luxury shoe market,” Pierre Denis, the chief executive of the shoe brand, said in a news release.
The pricing comes chose a risky time to stage a public offering as other I.P.O.s have struggled in recent weeks. Shares of other luxury companies Burberry, LVMH and Mulberry have taken a hit recently.
Jimmy Choo, was founded in 1996, by Jimmy Choo, who was making bespoke shoes in the East End of London, and eponymous designer/entrepreneur Tamara Mellon, (who was also Vogue’s former accessories director). Choo’s niece Sandra Choi later joined the company as creative director. Choo and Mellon left in 2001 shortly after Labelux's acquisition. The company gained mainstream fame after frequent appearances and name checks in TV series "Sex and the City" and “The Devil Wears Prada.”
Bank of America Merrill Lynch is acting as global coordinator on the Jimmy Choo offering, and HSBC is acting as a joint underwriter on the offering. The company will use the funds from its IPO to fuel international expansion.