Zegna Publicly Lists on New York Stock Exchange – WWD

NEWYORK – All the elements associated with a Wall Street debut are there, but Zegna’s first trading day on Monday is also a day that speaks volumes about family values ​​- and “la famiglia” is what most important to everyone.

“Strong families make strong companies and strong companies make strong families,” said President and CEO Gildo Zegna. “This is a four-generation family business and unity, strength, tenacity and determination in our actions have been family values ​​for 111 years,” he said, remembering his late father. Angelo and grandfather, founder. Ermenegildo Zegna, who mastered the “art of giving”.

In fact, the executive emphasized that, while going public, he is proud that the family will continue to control the men’s luxury goods group with a 66% stake.

Art director Alessandro Sartori said: “This company has an incredible history, built by the Zegna family with great passion and drive, through tangible and intangible values, both Equally important”. “This [IPO] a moment that was unimaginable a while ago and is the emotional necessity it brings. “

Zegna expressed that the Wall Street debut was “a unique experience and truly a historic moment,” before ringing the bell at the New York Stock Exchange, to cheers, applause and punches. stone. Black baseball caps with the new Zegna logo (launched after a rebranding earlier this month) have hit the air.

Shares began trading under the ticker ZGN shortly after 9:30 a.m. at $10.30 and closed 4.2 percent higher at $10.74 after rising 9.9 percent earlier in the day. , reaching $11.32.

The CEO is surrounded by his cousin Paolo Zegna; his son Edoardo; Sartori; Andrea Bonomi, founder of Investindustrial and chair of the Industry Advisory Board; Thom Browne, and Rodrigo Bazan, CEO of the American design firm; Luca Lo Curzio, CEO of Zegna USA, and Francesca Di Pasquantonio, director of investor relations.

“I am very proud to be Italian, we are Made in Italy ambassadors, and very proud to be the first Italian fashion house to be listed in New York,” said Zegna.

Zegna holds a majority stake in Thom Browne in 2018 and the designer of the same name admits he never thought his company would one day go public.

“I believe this will re-introduce Zegna to a lot of people, show how important the company is and the listing is testament to all the good work that has been done. I am so happy for Gildo and his family,” said the designer, praising Bazan’s work on his own brand. However, an IPO is by no means a destination for Thom Browne. “There’s still a lot of work to be done, it’s a good partnership and we know each other’s strengths,” Browne said.

“When Gildo told us about the plans to go public, we thought it would be great for the family and the shareholders, it was a long-term project and a great step forward for them.” Bazan, who went to the Wall Street event with his mother. When asked what he thinks this list means Thom Browne, he said “we don’t expect any changes, every day we focus on product, marketing and distribution.”

Bazan praises Zegna’s organization, which helped Thom Browne unify and create a seamless journey. “It was as if the Zegna company was already a commercial company, it had a great business model, and we were able to work independently and grow organically.”

“There was nothing in the development that interfered with our original idea, we are growing day by day and now it is not just a design brand but a business,” Browne said. Browne says, touts product quality, consistency and customer loyalty. “We are confident in the year and in the future and we are well on our way to reaching 100 stores.” By the end of the year, the company will have more than 75 stores around the world.

Zegna listed in New York after import into a business agreement with Investindustrial Acquisition Corp., a special purpose acquisition company, funded by investment subsidiaries of Investindustrial VII LP.

Bonomi also praised Zegna’s organization and structure and said that the listing would show “the potential for Italian high-fashion companies by investors working with families with similar goals. Fashion companies must organize themselves better and we, as investors, must be braver, and we will see more of this. Italy has a much larger role to play, and Gildo is showing the way to others. You will see more Italians following. ”

With the concept of a potential new fashion group emerging since the listing news, Bonomi said it was essential “not to confuse the success of French fashion groups with the way they operate.” of Italy”, as reflected in the number of active family firms. Consistency is more important, he says. “Zegna is always willing to listen to people but he knows the brand DNA has to be intact.”

Bonomi’s SPAC was founded in November 2020 in New York because he believes it will help “have a vision in the US and bring to the American market an iconic European business run by a small family.” suitable for development. I have found a financial regime, organization and [environmental, social and governance standards] I did not expect, and this is very important for investors. I’m so proud of this [agreement] and I am looking forward to the journey ahead”.

IIAC raised its total proceeds to $402.5 million in its IPO. The Zegna family continues to control luxurious the company has a share of nearly 66%. Investindustrial has a stake of about 13% share and about 21% is free float.

Based on transaction value, the incorporated entity will have an initial enterprise value of $3.1 billion with a market capitalization of $2.4 billion. The transaction brought in approximately $761 million in total proceeds.

“I’ve always said no to a list, but I had the honor of changing my mind, and I thought [Bonomi and the SPAC] Zegna said. “In the past, I didn’t have the courage to suggest it to my family, and first I had to convince myself, but then I jumped at the opportunity with the right team and the right strategy. I feel good and confident with the decision I’ve made and I hope more people will follow us on this path in the future. It’s a marathon but we like marathons. It’s the right time and we’ve got the trophy.”

In fact, the first day of trading comes as New York grapples with a spike in COVID-19 cases and the stock market is hit by pandemic-related uncertainties, but Zegna said he has never consider postponing listing.

He also said he would not check the stock’s performance on a daily basis. “I am focusing on my business and the added anxiety will distract me from my work. In any case, we cannot change our strategy every day, we have to think medium term independently of the situation. This won’t change my life, our strategy is right and won’t change with the IPO. Twenty was a tough year but we ended it stronger and more positive.”

The company has a lot going for it, he admits, focusing on rebranding and building accessory portfolios. “We have to focus our resources on that – if we can’t do it, someone else will, the market is there to take it. I’ve said it before, don’t get distracted – we’re not making women’s clothing and we have to stay focused. Raw materials are increasingly scarce and more expensive. We need scale and we need supply chain control.” The group has been investing in its own production pipeline for years, and Zegna says that any new acquisition that might come his way, “it has to align with the values ​​and DNA of the company.” we”.

Zegna himself showed off the company’s new course with a more laid-back look and admitted in the past he would wear a tie or a two-piece suit on such occasions. Instead, he wore a soft cashmere shirt – the cornerstone of Zegna’s Chic Leisure Fashions collection – and comfortable-looking pants in a gray palette.

“Working smart has changed our habits and our challenge is [offer] That new wardrobe. The suit is not dead but differentiated for new occasions”.

https://wwd.com/business-news/financial/zegna-shares-climb-first-day-trading-new-york-1235022061/ Zegna Publicly Lists on New York Stock Exchange – WWD


Inter Reviewed is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@interreviewed.com. The content will be deleted within 24 hours.

Related Articles

Back to top button