Italian Design Brands (IDB), a conglomerate of Italian furniture and lighting companies, has announced its intention to move forward with its initial public offering (IPO) on the Milan stock exchange. This decision follows a substantial investment from Tamburi Investment Partners, which acquired a majority stake of 50.7% in IDB’s parent company, Investindesign, from existing supporter Private Equity Partners, with the condition that the IPO is successful. The acquisition values IDB’s equity at 220 million euros ($241.3 million) and grants Tamburi the option to purchase an additional 20% stake.

To launch the IPO, IDB plans to offer its shares at a fixed price of 10.88 euros, resulting in a market capitalization exceeding 290 million euros. The IPO will include newly issued shares worth 70 million euros, as well as some existing shares. IDB is set to begin accepting stock orders from investors next week, coinciding with the release of the IPO prospectus. Among the renowned brands under the IDB umbrella are Gervasoni furniture and Davide Groppi lighting.

The decision by IDB to proceed with its IPO is notable considering the sluggish start to IPO activity in both Europe and the United States in 2023. The market experienced a significant slowdown in the previous year, primarily due to rising interest rates and economic uncertainty. However, IDB’s determination, coupled with the upcoming IPO of Italian gambling firm Lottomatica, backed by Apollo Global Management, is expected to inject momentum into the IPO market. It is hoped that this will encourage more companies to go public in the latter half of the year.

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