Balmain Mulls 2015 Hong Kong IPO
French House Is Latest Luxury Firm Looking to Tap Investor Demand for Fashion Brands
PARIS—French fashion house Pierre Balmain SA is considering listing on the Hong Kong Stock Exchange in 2015, according to a person familiar with the matter, the latest in a string of luxury firms looking to tap booming investor demand for fashion brands.
"This is the shareholders' current objective," said the person.
An initial public offering would allow Balmain to finance its global expansion plan, including in the U.S., which it views as a priority market, said the person. The label has yet to open any stores in the country, though its products are currently sold in a number of department stores.
The person familiar with the matter declined to give any financial details. A Balmain representative declined to comment. The label, founded in 1945 by Pierre Balmain, is currently owned by private shareholders.
The Paris-based label has made a swift return from the brink of financial collapse, having filed for bankruptcy protection in 2004.
Mr. Balmain built up the brand dressing stars from the 1950s until his death in 1982. Since then, several designers, including Oscar de la Renta, passed through the house.
Christophe Decarnin's arrival as creative director in 2005 marked the beginning of a new era for the label, as the designer contributed to reviving the ailing brand with his rock-chic style. Mr. Decarnin left the brand in 2011, replaced by up-and-coming talent Olivier Rousteing, who in his most recent runway show used leather and denim as part of a tailored but sexy collection.
Balmain posted sales of €30.4 million ($41.1 million) in 2012 and a profit of €3.1 million, according to financial statements filed with the Paris commercial court. In the past three years, the company's revenue has nearly doubled, rising from €16.5 million in 2009.
Fashion houses—large and small—have been seeking to tap into buoyant stock market demand. Marc Jacobs earlier this month stepped down as designer at Louis Vuitton to prepare his own brand for an IPO.
Italian house Moncler recently voiced plans to list in Milan, following in the footsteps of Brunello Cucinelli BC.MI +0.28% SpA and Salvatore Ferragamo SFER.MI -3.15% SpA which opted for IPOs in a bid to increase visibility, finance growth and to better compete with larger rivals.
On the Hong-Kong stock exchange, Balmain would potentially join larger rival Prada 1913.HK -3.74% SpA, which went public in 2011.