Ferretti Guides Hong Kong IPO Price Near Bottom of Range

(Bloomberg) -- Ferretti SpA, the Italian luxury yacht builder whose backers include the Ferrari family, is telling prospective investors it plans to price its Hong Kong initial public offering near the bottom of a marketed range, people familiar with the matter said. 

The company is poised to price the deal at HK$22.88 apiece, the people said, asking not to be identified because the information is private. The company would raise about HK$1.91 billion ($244 million) at that price, according to Bloomberg calculations.

Ferretti has been marketing 83.58 million shares at HK$21.82 to HK$28.24 each. 

An external representative for Ferretti declined to comment.

Ferretti’s first-time share sale comes as Hong Kong is witnessing a drought of sizable listings, owing to concerns ranging from China’s regulatory crackdown to market volatility sparked by higher interest rates and Russia’s invasion of Ukraine. IPO volumes in the Asian financial hub this quarter are set to be the lowest versus the initial three months of any given year since 2013, according to Bloomberg-compiled data.    

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Ferretti had previously targeted a market value of as much as 1.08 billion euros ($1.2 billion) in its attempt three years ago to list in its home country. The firm cited weak markets as the reason for withdrawing its listing.

Chinese giant Shandong Heavy Industry Group Co. and its affiliates own a controlling stake in Ferretti, according to a prospectus. The founding family of Italian sports car maker Ferrari NV is also an investor.

The company operates six shipyards in Italy and sells yachts to customers in more than 70 countries with brands including Ferretti Yachts, Itama, Wally and Riva, the prospectus shows, made famous by celebrity owners including George Clooney.

China International Capital Corp. is the sole sponsor of Ferretti’s IPO.

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