Prada now wants a large amount of capital both to re finance debt that's maturing in the next six to twelve months and to fund its planned growth into the Asian (especially Chinese) markets. Since financial markets are aware of Prada's urgent need to raise capital, it is necessary for the board of directors to come up with a credible strategy for raising the necessary capital of at least EUR1 billion.
Despite the fact, the press has been indicating that Prada will do an initial public offering, the business has tried this several times previously with no success, largely because of bad timing (9/11, the SARS outbreak, and the continuing the global financial catastrophe and the European soverign debt crises). The board reached Guido Santini of investment banking Grupo Capo Milano to produce a number of credible alternatives for raising the required capital, and also a strategy.
Prada To IPO or Not to IPO That Is the Question Case Study Solution
PUBLICATION DATE: August 17, 2012 PRODUCT #: W12153-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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