HONG KONG (Reuters) - Italian fashion house Prada SpA (1913.HK), whose June IPO was the biggest in Hong Kong this year, is buying nearly one-fifth of the up to $130 million initial public offering of local handbag maker Sitoy Group, IFR reported on Monday, citing sources with knowledge of the deal.
Milan-based Prada, which raised about $2.5 billion in its Hong Kong IPO, agreed to buy 19.6 percent of Sitoy shares on offer, with venture capital firm IDG buying 22 percent, said IFR, a Thomson Reuters publication. The sources could not be named because details of the transaction are not yet public.
Founded in 1968, Hong Kong-based Sitoy makes handbags and leather goods for Prada and other global brands. The company will start bookbuilding for the IPO on November 21 with pricing slated for November 29, IFR said.
Bank of America Merrill Lynch (BAC.N) was hired as sole lead on the deal, IFR reported.
Reporting by Fiona Lau; Writing by Elzio Barreto; Editing by Jacqueline Wong