* Ferragamo IPO could be Italy's first this year
* Books close June 23; debut expected June 29
(Adds detail, background)
MILAN, June 22 The initial public offering of
Italy's Salvatore Ferragamo has been covered more than twice,
sources said on Wednesday, in what could be Italy's first
listing this year and a boost for fragile European markets.
The European market for new listings has had a tough year
so far, with more than 15 deals pulled and others suffering
from poor aftermarket performance.
With investors increasingly reluctant to take part in new
offerings, many companies have struggled to attract enough
orders to cover their books.
"The offer has been subscribed more than two times," one
source told Reuters on condition of anonymity.
A second source confirmed demand was more than twice the
The Italian maker of shoes and bags aims to raise up to 402
million euros from selling up to 25 percent of its main
shareholder's shares, valuing it at up to 1.77 billion euros.
Books on the IPO are due to stay open until June 23, with
trading set to start on June 29.
Ferragamo has set a price range of 8.0-10.5 euros per
share. That puts it on a multiple of 16.4 to 21.3 times
current-year forecast earnings.
At the bottom of the range, it comes at a discount to
luxury peers such as LVMH Moet Hennessy Louis Vuitton SA (LVMH.PA), Burberry Group Plc (BRBY.L) and Tod's SpA
Global coordinators in the operation are Mediobanca
(MDBI.MI), JP Morgan Chase & Co (JPM.N) and Intesa Sanpaolo SpA
(ISP.MI) unit Banca IMI.
(Reporting by Massimo Gaia and Elisa Anzolin; writing by
Stephen Jewkes; editing by Andre Grenon)