Luxury shoemaker Jimmy Choo is debuting plans for an IPO on the stock market that could value up to $1.3 Billion dollars, in order to fund its expansion in Asia. The brand has been bought by German investment firm JAB in 2011. The brand has long been a high end favorite since its creation, its retail price ranges from $600 to $4000 for a pair of shoes, worn by royalties and celebrities alike.
The interesting thing about this article is that it relates to one of the topics covered in class about IPO, Initial Public Offering. JAB has agreed to a float of public stake 25% in the London Stock Exchange. This is an excellent example of a company with strong branding emerging in the stock market that could be a enormous success. The fact that shoes are among one of the fastest growing segment in the luxury market, and Jimmy Choo is undeniably a global, recognizable label, going public is a wise decision.
Also, the company is hoping to raise $400 million dollars for its expansion specifically targeted in Asia, opening up 10 – 15 stores a year could impact its revenue stream in the long run depending on how popular the brand becomes. It initially opened its first stores in London but its trend was spread to the US due to high exposure by celebrities and TV show.
Article Source: Jimmy Choo Is Planning An IPO To Fund A Massive Asian Expansion