Golden Goose, owned by private equity firm Permira, is aiming at a market capitalization of up to €1.86 billion ($2 billion) in its upcoming initial public offering (IPO) on the Milan bourse.

The Italian-based luxury sneaker maker set a price range between €9.50 to €10.50 for the share listing, which implies a market capitalization between €1.69 billion to 1.86 billion.

The valuation is lower than initially expected by Permira.

Sources close to the deal told Reuters in April that Permira was aiming for an enterprise value of around €3 billion. In 2020, Golden Goose was valued at €1.3 billion when Permira acquired it.

Golden Goose expects to raise up to €558 million before exercising the overallotment option from the offering. Proceeds are to be used to strengthen the brand’s capital structure, support growth investments, and reduce debt.

Founded in Venice in 2000, Golden Goose sales grew 23 percent on average over the last three years and are expected to increase around 9 percent in the medium-long term, according to its IPO prospectus.

Net revenues reached €587 million ($630 mm) last year, helped by opening 21 stores to reach a total of 191 at the end of 2023. Adjusted core profit advanced 19 percent to €200 million in 2023.

Sneakers account for 89 percent of the group’s total revenue, with its Super-Star model contributing 42 percent of the total. Expansion opportunities cited include ready-to-wear, boots and accessories.

The offer period will start on June 13 and end on June 18. The first day of trading is expected to be June 21. BofA, JPMorgan, Mediobanca and UBS will act as joint global coordinators in the IPO, with BNP Paribas, Citigroup and UniCredit as joint bookrunners.

Image courtesy Golden Goose