(Yicai Global) Dec. 16 -- Shares of Lanvin Group Holdings, a French fashion house owned by Chinese conglomerate Fosun International, took back some of the lost ground in after-hours trading, following a more than 20 percent slump during the first trading day in New York.
Shares of the retailer of brands Lanvin, Sergio Rossi, and Wolford [NYSE: LANV] rose by 11.4 percent in after-hours trading at 3.22 p.m. Beijing time after diving 22.9 percent to close at USD7.63 yesterday with a market cap of USD532.1 million.
Lanvin finished its integration with Primavera Capital Acquisition, a special purpose acquisition company, yesterday.
The premium fashion seller's valuation was reduced by around 20 percent to USD1 billion pre-initial public offering from March, but more than half of the slump came from exchange rate fluctuations and the rest from macro factors, Chairwoman Joann Cheng told Yicai Global in an online meeting on December 14. The adjustment will attract long-term investments from long-standing investors, Cheng added.
Besides Shanghai-based Fosun and its subsidiaries, Lanvin attracted capital from other investors, including Stella International Holdings, Zhizun E-Commerce, Golden A&A, Handsome Corp., Aspex Master Fund and Meritz Securities.
The listing proceeds will be used to cultivate the group's existing brands and to fund its strategic acquisitions to further diversify its brand portfolio, per the announcement.
Lanvin's performance is improving despite a more conservative investment sentiment, caused by the macro environment, Cheng said. In the first half, the firm's revenue jumped 73 percent to EUR202 million (USD215.1 million) from a year ago, it revealed on Dec. 14. Sales of core brand Lanvin more than doubled to EUR64 million while the tally of Austrian skinwear brand Wolford climbed 29 percent.
"Going public is a natural step for Lanvin Group right now, ” Cheng said, adding that going forward, the group strives to drive organic growth through geographic, channel and product expansion while making disciplined investments. "Against a background of proven resilience in the luxury market, we are confident that this strategy will enable us to deliver sustained long-term growth and value for our shareholders."
Founded in 1889 in Paris, Lanvin has 300 retail stores in more than 80 countries with over 3,600 employees.
Editor: Emmi Laine, Xiao Yi