Fashion house Prada seeks to raise 1 billion euros through sale of shares in Milan

Prada plans to seek at least 1 billion euros from a second listing in Milan, people familiar with the matter have said, as the Italian fashion house seeks to diversify its investor base outside of Hong Kong.

The Milan-based maker of luxury clothes, fragrances and accessories is working with Goldman Sachs on preliminary preparations for a potential bid, sources say. A list would likely take place next year, they said.

Prada raised $2.1 billion (€2 billion) by listing a 20% stake in Hong Kong at a time when big luxury brands were flocking to the Asian market to cater to their biggest customer base. The company, which has a market value of $14.8 billion, is seeking to raise funds by selling new shares in Milan, the sources said.

A vehicle backed by co-chief executive Miuccia Prada and her husband, Italian businessman Patrizio Bertelli, owns 80% of the fashion business. They are unlikely to reduce their stake in a deal, the people said.

Prada and its advisers are working through the complexities of the first Hong Kong-Milan dual listing and no final decision on size or timing has been made, people say. Prada chairman Paolo Zannoni said in July that while a dual listing in Milan has always been an option for the company, it was not a priority.

Representatives for Prada and Goldman Sachs declined to comment.