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* Shares up 6.17 pct from IPO price
* Ferragamo 1st IPO completed in Milan this year
* Ferragamo received bids worth 3.6 times offer
* Follows IPO of Italian peer Prada in Hong Kong
By Antonella Ciancio
MILAN, June 29 Shares of Italian luxury
shoemaker Salvatore Ferragamo rose in their first day
of trading on Wednesday, defying expectations for a muted debut.
The Florence-based maker of shoes worn by Hollywood stars,
such as Audrey Hepburn and Marilyn Monroe, trimmed debut gains
to be up 6.17 percent at 9.555 euros at 0711. The blue-chip FTSE
MIB index gained 0.96 percent.
"We have faced difficult moments on the equity markets, but
we made it," Chairman Ferruccio Ferragamo said at a ceremony
marking the launch of trading on the Milan bourse.
A Milan fund manager said Ferragamo had benefited from a
launch when markets were more optimistic about a crucial Greek
austerity plan getting parliamentary approval. Passage would
secure more aid from international lenders and avoid default.
"The stock was not placed at a great price and the multiples
were fairly high in our opinion. But the company has an
excellent story and the market's buying that," said the manager,
who spoke on condition of anonymity.
The shares had been priced at 9 euros each in the initial
public offering (IPO), at the middle of their flotation range.
Larger rival Prada made a solid debut in Hong Kong
on Friday, with shares rising by as much as 1.3 percent.
More than 20 IPOs have been pulled in Europe this year.
Those who have managed to list have seen lackluster post-launch
However, in an encouraging sign for sentiment in the
European IPO market, Poland completed the $1.9 billion listing
of coking coal miner JSW late on Tuesday, pricing its float
above the mid-point of its indicative range.
For a FACTBOX on Ferragamo
Prada debut bodes well for Ferragamo
Breakingviews on Prada
Ferragamo defied a tough European market for new listings,
betting on growth prospects in booming Asian markets.
Ferragamo raised 344 million euros ($487.1 million) in the
listing, which values the group at 1.5 billion euros. By
comparison, Prada raised $2.14 billion in its IPO.
Ferragamo's offering received 3.6 times the amount of stock
made available. But some fund managers had expressed concerns
the valuation was a bit expensive for a group with lower
profitability compared with the average of its European peers.
"In my opinion it's a bit far from the fair price in terms
of valuations," Davide Fossati, fund manager at Italy's Anima
SGR, told Reuters at a roadshow in Milan last week.
(Additional reporting by Maria Pia Quaglia and Stephen Jewkes;
Editing by Erica Billingham and Louise Heavens)