The Milan-based company, known for its colorful Miu Miu dresses and Prada handbags, is set to file the so-called A1 listing application form with the Hong Kong stock exchange ahead of a planned listing at the end of June, the sources said.
Two sources said the filing is expected on Friday, while a third source said it could happen on Thursday.
Prada was not immediately available for comment.
The IPO, the first for an Italian company in Hong Kong, would come on the heels of other Hong Kong listings by overseas companies.
These include Russian aluminum maker UC RUSAL (0486.HK) and French skincare products retailer L'Occitane (0973.HK), which have looked to raise funds from deep-pocketed Asian investors and to benefit from higher valuations.
The group could raise at least 1.6 billion euros ($2.25 billion) and seek a valuation of around 15 times 2010 core earnings, above the 12.5 times average of the luxury sector, two other sources close to the issue said.
Prada posted earnings before interest, tax, depreciation and amortization (EBITDA) of around 536 million euros in the fiscal year ended on January 31.
The fashion house, run by Patrizio Bertelli and designer Miuccia Prada, has about a third of its 326 directly operated stores in Asia-Pacific, its fastest-growing market.
Prada has appointed Italian banks UniCredit SpA (CRDI.MI) and Intesa Sanpaolo (ISP.MI), both sitting on the company's board, along with Goldman Sachs (GS.N) and Credit Agricole's (CAGR.PA) CLSA brokerage as joint bookrunners and global coordinators of the IPO.
($1=.7110 Euro)
(Additional reporting by Antonella Ciancio and Massimo Gaia; Editing by Chris Lewis, Will Waterman and David Hulmes)
Prada to float 20% of shares in Hong Kong: source
MILAN (AFP) – Italian luxury house Prada is planning to sell a 20 percent stake on the Hong Kong stock exchange in a move that would value the group at up to eight billion euros.
The fashion group filed a request for its highly anticipated public offering to the Hong Kong Stock Exchange late on Wednesday, a source close to the company told Dow Jones Newswires said Thursday.
Should Prada successfully sell the 20 percent stake to Hong Kong investors, the company's would be valued at between seven and eight billion euros ($9.9-11.3 billion), the source said.
Prada announced in January it would make its first public listing on the Hong Kong bourse in a sign of Asia's growing appetite for designer goods.
The group has been keen to be list its shares for several years but had previously held back due to uncertain market conditions.
The listing is likely to take place in June or July.
Last October, the fashion powerhouse announced that it had re-opened the dossier and was looking particularly at Hong Kong on top of other possibilities such as Milan or London.
China is the world's fastest-growing market for luxury goods.
It is forecast to be the world's top buyer of products such as cosmetics, handbags, watches, shoes and clothes by 2015, according to consultancy PriceWaterhouseCoopers.
The group, which includes the Prada, Miu Miu, Church's and Car Shoe brands is 95 percent controlled by the Prada family and executives.