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The Milan bourse was a dud during the depths of the financial crisis and the recession and it appears the worst is over as Italy claws its way slowly out of recession and the appetite for growth stocks of the luxury variety makes a strong comeback.
The Milan bourse was a dud during the depths of the financial crisis and the recession and it appears the worst is over as Italy claws its way slowly out of recession and the appetite for growth stocks of the luxury variety makes a strong comeback.
(Moncler website)

Luxury brand Moncler makes Milan stock market fashionable again

The moribund Milan market has sprung – make that vaulted – back to life. On Monday, the bourse played host to the most successful European initial public offering of the year, when Moncler, the luxury brand that makes ski jackets worth $1,500 or more, climbed 50 per cent.

The shares were priced at €10.20 ($15 Canadian), the top end of analysts’ estimates, and closed at €14.97, valuing the fairly small company at €3.7-billion. On Tuesday, the shares fell a bit, to about €14.20. Still, it was a stunning debut. Moncler’s founder and chairman, Remo Ruffini, who owns a third of the company, is now a paper billionaire. His private equity backers, among them Carlyle, have made between three and six times their investment. Prosecco all around.