Europe is going through a bit of an IPO drought at the moment, with Italian fashion brand Golden Goose ditching its planned IPO in Milan this month. The sportswear group, which has been popularised by celebrity exposure, has been looking at a USD 2 billion listing.
Part of the problem seems to be the perception of an uptick in political volatility in Europe which could scare investors. First there was the success of right wing parties in the European parliamentary elections, followed shortly after by the announcement of a snap election in France. Golden Goose told press it felt the current market backdrop was simply not the right environment to take the company public.
It will be a disappointment for many investors, as stocks in this sector have been bucking the trend and doing well in 2024. Retail spend still seems to be available for high end trainers.
Golden Goose private equity backer Permira seems to have been spooked by the French election news. Permira is also known to be a little IPO-shy having seen a number of under-performing listings in the fashion space, including the infamous Dr Martens listing in 2021. Insiders said that the ghost of Dr Martens haunted the discussions with bankers about whether to pull the IPO.
Several large fund managers also shied away from the book building process as they trimmed their European stocks exposure after the European Parliament elections result.
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Zilch debt deal accelerates path to IPO
UK payments firm Zilch has said it is moving closer to an IPO following the successful raising of USD 125m in debt financing from Deutsche Bank. The deal was structured as a securitisation, but Zilch reckons that it will help the company to triple sales in the next couple of years.
Zilch specialises in the buy now pay later game, with shoppers able to pay for their purchases in interest free instalments. It is regularly compared with Klarna. Zilch had been looking to get out from under a previous credit deal with Goldman Sachs, which it said was too restrictive.
Zilch CEO Philip Belamant told press that the debt restructure would accelerate the path to an IPO for the British fintech. He said the target for an IPO is the next 12-24 months. Zilch has generated over GBP 2.5bn in gross merchandise value since it was founded. An IPO will be closely watched by investors who like this cash rich business model.
Momenta gets green light for US IPO
China’s securities regulator gave permission last week for Momenta Global to begin plans for an IPO in the US. Momenta is an autonomous driving start up which has the license to carry out tests for its cars on China’s roads. It is one of nine companies in this respect.
The Chinese car industry is researching the use of five defined levels of autonomous driving, which will include taking your hands completely off the wheel. The car makers will still carry legal responsibility for what happens next.
Momenta is planning to list on either Nasdaq or the NYSE.
