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Highlights
- Zegna completed its business combination with Investindustrial Acquisition Corp on Friday, December 17.
- Started as a textile company by Ermenegildo Zegna in 1910, Zegna has emerged as of the leading luxury fashion brands in the world.
- Zegna will start trading on the New York Stock Exchange (NYSE) on Monday, December 20.
Italian luxury fashion brand Zegna is all set to make its public debut in the US equity markets after it completed its business agreement with a blank-check company.
Started as a textile company by Ermenegildo Zegna in 1910, Zegna has emerged as of the leading luxury fashion brands in the world.
Potential investors are searching for the fashion brand's stock in the US markets, and on that note, let's take a look at how to invest in this company.
Zegna public debut: Key details
Zegna will start trading on the New York Stock Exchange (NYSE) on Monday, December 20, after merging with a special purpose acquisition company (SPAC).
The luxury fashion brand will trade under the stock symbol ZGN, and the combined entity is expected to have an enterprise value of US$ 3.1 billion and its initial market capitalization will be US$ 2.4 billion.
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Zegna completed its business combination with Investindustrial Acquisition Corp on Friday, December 17, and gave a stake of around 66 per cent to the Zegna family.
Bottom Line
The transaction has generated US$ 761 million in gross proceeds, and it is expected to gain strong interest from retail investors after it begins trading on the stock exchange.
According to reports, Zenga experienced a strong momentum and delivered strong sales during the first half of 2021. During this period, the company recorded revenues up by 50 per cent year-over-year (YoY).
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In 2019, Zegna had reportedly dismissed rumours that the company had any public debut plans. However, it seems that the pandemic changed its situation as it has made it difficult for independent brands to compete with fashion conglomerates.
During the pandemic in 2020, Zegna's sales had reportedly dropped by 23 per cent and it posted a net loss of €45 million against a net profit of €38 million.
