Shares of Jimmy Choo were up slightly in early trading Friday after the British luxury shoe retailer priced its offering at the bottom of its expected range. With the pricing, Jimmy Choo became the first stand-alone luxury footwear brand to be publicly traded.
The flat opening came amid a sluggish month for new listings in Europe, according to the New York Times. Earlier in the week, Jimmy Choo reduced its price range to between £1.40 ($2.25) and £1.60 a share. “Today’s announcement marks an important milestone for Jimmy Choo and recognizes not only the appeal of our high-quality products, but also confidence in our ability to outperform the luxury shoe market,” Pierre Denis, the chief executive of the shoe brand, said in a statement.
Jimmy Choo sold nearly 30 percent of its new holding company in the offering of 100.9 million shares, raising about £141 million ($227 million) for its owner, JAB Luxury, a unit of the German holding company Joh. A. Benckiser. "If Burberry can build a 2 billion pound luxury lifestyle brand on the back of a trench coat, no one should bet against Jimmy Choo doing the same on the heel of a stiletto," Fflur Roberts, head of luxury goods at consumer markets researcher Euromonitor International, told Reuters.
Jimmy Choo has about 170 stories in 34 countries. The shoe company was founded in 1996 in London. The brand became popular on the back of style-focused TV shows and movies, including “Sex and the City” and “The Devil Wears Prada.”
It's been a dismal month for stock debuts. Rocket Internet, the German technology company, and Zalanado, the online clothing and accessories seller, were both trading well below their offering prices after their debuts in Frankfurt this month. Pershing Square Holdings, a fund controlled by the activist investor William A. Ackman, closed Thursday at $21.80, about 13 percent below its offer price after it began trading in Amsterdam on Monday, according to the New York Times.