A model presents a creation from Jimmy Choo during its "London Collections: Men" show in London in this June 16, 2014.SUZANNE PLUNKETT/Reuters
Jimmy Choo Plc was little changed in its debut in London trading after the maker of of $1,995 Lust peep-toe sandals sold shares at the bottom end of its range following a week of market turmoil.
The stock traded at 140 pence, the price at which they were sold in the initial public offering, as of 12:18 p.m. in the U.K. capital, after earlier advancing as much as 2.1 per cent.
JAB, the investment arm of the billionaire Reimann family, sold a 25.9 per cent Choo stake for 140 pence a share. The shares were originally offered for as much as 180 pence before the shoemaker lowered the top end to 160 pence this week, people with knowledge of the matter said.
JAB seemed "very eager to float Choo one way or the other," said Luca Solca, an analyst at Exane BNP Paribas. The IPO signals it considers a "lower price better than no price."
The IPO valued Jimmy Choo at £546-million ($876-million U.S.), about the same amount JAB paid for the company three years ago. The IPO comes as subdued spending by Chinese shoppers causes luxury industry growth to slow and after weakening stock markets led U.K. companies including Homebuilder Miller Homes Plc and lender Aldermore Group Plc to shelve plans to list.
Choo's revenue is growing at a high double-digit pace in China, where it aims to expand, and more than 20 per cent in Japan, Chief Executive Officer Pierre Denis said last month. The company, whose shoes were made famous by "Sex and the City" character Carrie Bradshaw, benefits from high brand recognition and limited distribution in Asia, where consumers are tiring of widely available brands, according to Neev Capital.
The IPO reflects "confidence in our ability to outperform the luxury shoe market," Dennis said in the statement.
Choo, which was acquired by private-equity investors three times before being bought by JAB for more than £500-million in 2011, sells women's and men's shoes, handbags and accessories in more than 100 stores worldwide.
JAB reorganized its business in June, bringing brands including Choo and jacket-maker Belstaff under direct management in a move it said reflected an increasing commitment to luxury goods. The shoemaker's namesake designer left in 2001, followed by co-founder Tamara Mellon a decade later.
Bank of America Corp.'s Merrill Lynch International organized the sale as sole sponsor and global coordinator. Merrill and HSBC Bank Plc are joint bookrunners and BHF-Bank is co-lead manager.