French luxury group SMCP prepares for IPO

SMCP, the parent company behind fashion luxury retailers Sandro, Maje and Claudie Pierlot has taken the first steps for a potential initial public offering (IPO).

The company has filed a registration document with the French stock market regulator, the AMF, beginning the process for a possible IPO. "We are happy to register today our document de base with the AMF, which represents the first preliminary step toward a potential IPO," said Daniel Lalonde, SMCP president and chief executive officer, said in a statement on Tuesday.

French luxury group SMCP prepares for IPO

SMCP takes first steps for potential IPO

A IPO could see SMCP valued at over 1 billion euros, reported sources close to the matter, as the fashion company aims to continue expanding internationally, focusing on the countries they have experienced "significant success": the UK, the US, Spain, Italy and China. SMCP operated 1,118 stores across countries as of December 31, 2015. "We are confident that we will continue pursuing profitable growth, via both organic growth and the expansion of our network across our key markets, with the ambition to become a global leader in accessible luxury," added Lalonde.

French luxury group SMCP prepares for IPO

The announcement comes as SMCP revealed a 33 percent increase in net sales to 675 million euros in 2015. Sales grew 11 percent in comparable terms and EBITDA was up 44 percent to 107 million euros, as the company has averaged a 26 percent increase in sales per year since 2012. Private equity firm, Kohlberg Kravis Roberts & Co. (KKR), which acquired a 65 percent stake in SMCP in 2013, previously revealed that it was evaluating "strategic options" for the fashion company, focusing on aiding the "future growth and development of the company."

The New-York based firm previously considered a sale of SMCP, with Chinese textile producer, Shandong Ruyi Group, being named as the preferred bidder for the luxury fashion group last month, after other firms, such as Lion Capital dropped out of the bidding.

 

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