Italian Design Brands to Raise 70M Euros in IPO

MILAN — Italian Design Brands, one of the nation’s largest high-end furniture and design holdings, confirmed on Monday its intention to list its shares on Euronext Milan, a regulated market organized and managed by Borsa Italiana.

Established in 2015 by Private Equity Partners and a select group of investors through a company called Investindesign, the Milan-based company said the offering would consist of newly issued ordinary shares for an overall value of 70 million euros and existing ordinary shares offered by the company’s shareholders, in order to reach free float of at least 25 percent of the share capital resulting from the completion of the listing.  The offering will also include a greenshoe option.

“The proceeds from the capital Increase will be used by the company to support the implementation of its strategic objectives, allocating them to the implementation of the organic growth strategy, according to the objectives described in the business plan, the financing of the M&A activity, and (sustain the capital expenditures and the working capital,” the company said in a statement.

IDB has already filed its prospectus statement to Italy’s market watchdog Consob. Upon approval, the offering is expected to start in May 2023. Citigroup and Italian investment bank Equita are acting as joint global coordinators, IDB said.

“IDB’s listing project on Euronext Milan and, if the conditions are right, on the Star segment, remains valid and confirmed for the first half of this year, market conditions permitting,” its chief executive officer Andrea Sasso said in an interview with WWD last month.  “The IPO is a tremendous pull factor for our companies, which will help bring in new talent and top-level managers,” he added. 

Last month, the group reported that its adjusted net profit almost doubled in 2022, reaching 25.5 million euros, compared to 13.3 million euros in 2021. Sales also rocketed 84.8 percent on a pro-forma basis to 266.5 million euros. Italian Design Brands’ adjusted earnings before interest, taxes, depreciation and amortization rose 111 percent to 49.2 million euros in 2022, with a pro-forma margin of 18.5 percent, up from 16.2 percent in 2021, IDB said.

In June 2022, IDB acquired the majority of Gamma Arredamenti International, an Italian company specializing in the production of upholstered furniture. In an operation that was finalized earlier this year, IDB entered into the kitchen and systems sector with a majority stake in Cubo Design, an Abruzzo, Italy-based company which owns the Binova and Miton Cucine brands, specializing in the production of modular kitchens and systems.

In total, IDB’s portfolio includes 10 companies and 13 brands including upscale furniture brands Saba Italia, Gervasoni, Meridiani, lighting companies Davide Groppi, Axolight and Flexalighting in North America, as well as luxury contract companies like Modar and Cenacchi International, which makes installation of luxury furnishings for stores, showrooms, offices, hotels and prestigious homes anywhere in the world.  

“The company has pursued and will keep pursuing a clear and effective growth strategy through M&A activity, with the objective of consolidating its international presence in the market steadily integrating new companies,” IDB added.

Its luxury contract business surged 73.6 percent in 2022 to 68.3 million euros, while its furniture business rose 39.6 percent to 117 million euros on a pro-forma basis.