Golden Goose Eyes €1.9B Valuation in Milan IPO

Key Takeaway

• Golden Goose aims to raise €558 million through an IPO in Milan, with a price range of €9.50 to €10.50 per share, valuing the company at up to €1.9 billion.
• StubHub reported $350 million EBITDA and $1.4 billion revenue for the year ending in March, planning a US IPO as soon as July.
• Shein's potential £50 billion London IPO may not meet FTSE 100 inclusion criteria due to insufficient free float requirements.

Golden Goose IPO Details

Golden Goose Group SpA, a luxury sneaker brand, and its shareholders are aiming to raise approximately €558 million ($600 million) through an initial public offering (IPO). The company, along with its owner, private equity firm Permira, plans to sell around 30% of the company's share capital at a price range of €9.50 to €10.50 per share. This IPO is set to be Milan's largest since Lottomatica SpA's €599 million sale in May of the previous year, giving Golden Goose an implied market value between €1.7 billion and €1.9 billion.

Golden Goose is issuing about 10 million new shares, while Permira could sell up to 43.6 million existing shares at the top of the price range. Invesco Advisers Inc. has committed to being a cornerstone investor, taking a €100 million stake at the final price. If there is sufficient demand, the deal size could increase to approximately €642 million through a green shoe option.

The company plans to use the proceeds from the IPO to pay down debt and is targeting net sales of about €1 billion by 2029, up from €587 million last year. Bank of America Corp., JPMorgan Chase & Co., Mediobanca SpA, and UBS Group AG are arranging the offering.

StubHub Financial Performance

StubHub, the ticket resale platform, reported $350 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year ending in March. The company also saw $1.4 billion in revenue and $505 million in unlevered free cash flow during the same period. StubHub is currently in early discussions with prospective investors for a planned US IPO, which could occur as soon as July. Goldman Sachs Group Inc., JPMorgan Chase & Co., and Bank of America Corp. are working on the listing.

The ticketing business is currently facing challenges, including a US Department of Justice-led lawsuit against Live Nation Entertainment Inc., which seeks to force the sale of its ticketing arm, Ticketmaster. This could potentially create an independent rival to platforms like StubHub and Viagogo. StubHub had previously explored going public via a direct listing in 2022, which could have valued the company at over $13 billion.

Shares of Vivid Seats Inc., a competitor to StubHub, have declined about 60% since its listing via a merger with a blank-check company in 2021. Vivid Seats reported $142 million in adjusted EBITDA and $712.9 million in revenue in 2023, trading at a multiple of about 12.2 times earnings.

Shein's FTSE 100 Inclusion Challenges

Shein, the online retailer, may not qualify for inclusion in the FTSE 100 Index despite preparing for an IPO that could be one of the largest ever in the UK. According to The Times, the number of shares being sold by Shein will not meet the minimum requirement for inclusion in FTSE indexes. Companies incorporated outside the UK must have a minimum free float of 25% under stock exchange rules.

Shein is preparing a confidential filing for an IPO in London, potentially seeking a valuation of around £50 billion ($64 billion). The float is unlikely to take place until after the summer holidays in August. Bloomberg reported in February that Shein was actively considering London for its IPO, as it deemed it unlikely that the US Securities and Exchange Commission would approve a New York IPO.