MILAN (Reuters) – Shares in Italian yacht maker Ferretti rose more than 4% in an initial spike on their debut on Euronext Milan on Tuesday as the company embarked on a dual listing.
Ferretti, which floated in Hong Kong last year, had priced its offer for the listing in Milan at 3 euros per share, giving the company a valuation of around 1 billion euros ($1.1 billion).
The shares traded as high as 3.14 euros, with an automatic halt applied for excess volatility before dropping back towards the offer price.
Ferretti’s main shareholder, Chinese conglomerate Weichai, sold shares accounting for 26.1% of the company capital, generating 265 million euros.
“It is the first time that a stock listed in Hong Kong gets a dual listing on a European market, something which other companies could now replicate,” said Christian Basellini, Head of Equity Capital Markets Italy, CE&EE and International at UniCredit.
“Now we’ll have to see whether the stock will get traded in a balanced manner on both markets or one will prevail over the other,” he added.
Ferretti shares in Hong Kong rose 1% to HK$25 at around 0700 GMT.
Fashion house Prada is also considering listing shares in Milan.
In the Ferretti’s offer Goldman Sachs International, J.P. Morgan and UniCredit acted as joint global coordinators and joint bookrunners, while Equita and Berenberg acted as joint bookrunners.
(Reporting by Elisa Anzolin, Editing by Keith Weir)
