Luxury PRADA After Listing Road Bumpy

HK $39.50, Italy luxury brand Prada (Prada) on the 22 day struggled to appear on the trading board of the Hongkong Stock Exchange on the basis of 1913 of the code, the highest price of that month was HK $40, and ended up at HK $39.60.

According to the results of the ballot issued by PDA, the rate of public offering is 100%, that is, all applications are signed. The stock received 5950 applications for a total of 20 million 770 thousand shares, about 0.5 times as much as the public offering. Due to the shortage of public offering shares, the other 21 million 548 thousand shares were allocated to the international placement, while the placement was recorded in a moderate oversubscription.

　　 "Italy tax" is not the only stumbling block.

"I almost worry that it can't get to the market." A Hongkong shareholder laughed. Indeed, compared with the luxurious and spectacular IPO roadshow in the past two weeks, Prada's list The road seems to have gone "obscure" - the initial issuing price range was 36.5 to HK $48 per share, and then narrowed to HK $39.5 to HK $42.2. However, the high price cap hit the market atmosphere. The public offering was only half subscribed, and the 24 day price was 39.5 yuan per share, which is the lower limit of the price range.

Hongkong's securities sources said Prada was not only cold but also "cold". Italy Taxation "The problem is related, and more importantly, it is" untimely "-" at present, global share prices are falling, and retail stocks in Hongkong are also performing poorly. At this time, Prada's pricing is too high to be understood. " If the price is set at the lower limit of HK $39.5 per share, it is equivalent to 21 to 28 times the forecast price earnings ratio this year. "We see that Prada's performance increased 1.5 times last year, but we can not say that this year can also achieve such an increase. After all, the base has increased and the Chinese market has also seen a cooling down trend." He added again that "although HK $39.5 is the lower limit, it is not cheap." Insiders said: "Prada is at least 10% to 15% from a reasonable price, so some investors may prefer to buy when the share price falls."

According to the Prada prospectus, when a company issues dividends to shareholders, shareholders must pay a 27% dividend tax to the government of Italy, and a capital gains tax must be paid when buying and selling Prada shares. In addition, the tax payment procedure is quite complicated. Investors may need to go to the Italy consulate to declare tax to the Italy government. If they do not declare tax, they will violate Italy law. The fine will be from 258 euros to 240% of the tax payable. This tedious process has also led many investors to move forward.

As for Prada's stock market reaction, which was damaged by investors' tax payment, Liang Fengyi, deputy director of the Hongkong financial affairs and Treasury Bureau, said recently that Hongkong had signed an agreement to avoid double taxation with many countries, and the Inland Revenue Department had already started discussions with Italy and will conduct the next round of discussions. According to past experience, the dividend withholding tax rate can also generally be reduced. Prada also said that the website of the Italy tax bureau is now full Italian, and they will publish the English instructions on related matters in the near future.

The cold of Prada will not affect the latecomers.

" Luxury goods Generally speaking, the brand takes two indicators: one reference rate and anonymous reference rate. The former reflects popularity, and the latter reflects the status of the industry, "Chen Zhilong, director of China's A H luxury goods group, said in an interview with Yangcheng Evening News reporter:" while choosing to list in Hongkong, these two indicators can be greatly satisfied. This is why more and more luxury goods include Prada's listing in Hongkong.

Chen Zhilong said, if we say from capital, Hong Kong It is also the core market in Asia. "It can just radiate the" heavy land "of the two major luxury goods consumption in China and Japan, which is a market that luxury brands can not ignore. Therefore, he disclosed that in addition to the listed Milan station, Samsonite and Prada, there will also be many famous French brands ready to list in Hongkong.

"Will Prada have a high impact on other luxury items?" Chen Zhilong said with a smile. "As far as the matter is concerned, Prada's pricing is really too high. I believe it is related to the promotion of the organization. In fact, people in our industry know what price it is, and I think they should be satisfied enough to reach the present price.

"Luxury stocks are cold" is also a good thing, Chen Zhilong said, the same luxury goods in the Asian market performance than Europe and the United States market crazy, is not a good thing. "I'm not sure why the agency is so fanatical," he laughs. "But luxury goods are very good for the capital market in Hongkong, and will develop rapidly at least in the next 5-10 years."