Yachts compete during the Rolex Sydney Hobart Yacht Race in Sydney, Australia, on Dec. 26, 2021. Over the past 76 years, the Rolex Sydney Hobart Yacht Race has become an icon of Australia's summer sport. Photo:Xinhua

 
Italian luxury yacht builder Ferretti Group launched a Hong Kong IPO that values the company at up to $1.2 billion, a term sheet seen by Reuters showed, going ahead despite volatility in global equity markets.

Ferretti, whose customers include British fashion designer Jimmy Choo and former football star David Beckham, is a market leader for yachts measuring at least 80 feet, with a price tag ranging from 4 million euros ($4.4 million) to more than 20 million.

Ferretti has said it has no exposure to mega- and giga-yachts chiefly hit by global uncertainties. Fully customized superyachts measuring more than 100 feet (30.48 meters)account for only 9 percent of group revenues.

Braving choppy markets after a failed IPO attempt in 2019, Ferretti plans to sell 83.58 million shares, or around 25 percent of its total equity capital, to raise up to $301 million, according to the term sheet.

That entails a valuation of $932 million-$1.2 billion, with shares to be priced at HK$21.82 ($2.78) to HK$28.24 ($3.61) each, the term sheet showed.

Ferretti expects the value of the global yacht market to grow on average 7 percent a year, reaching 27 billion euros in 2025, with demand strengthening particularly in the Asia-Pacific region, thanks also to tax breaks in China, an investor presentation seen by Reuters showed.

Building on 2021 revenues of 900 million euros, Ferretti plans to use most of the IPO proceeds to grow its core manufacturing business, adding new models, and to boost side services such as after-sales assistance or yacht chartering.

Ferretti, whose brands include Riva, Pershing and Wally, is owned by Chinese conglomerate Weichai Group.

Piero Ferrari, son of the luxury sportscar company's founder Enzo Ferrari, owns 11 percent of the company and sits on the board.

Five Chinese cornerstone investors have subscribed for $129.5 million worth of stock in the issue.

The 54-year-old company runs six shipyards in Italy and competes with family-owned Sanlorenzo, which listed in Milan in 2019.

The value of Hong Kong IPOs in the first quarter tumbled to $837.4 million from $11 billion at the same time in 2021, Refinitiv data showed.

The shares will start trading on the Hong Kong Stock Exchange on March 31.

Reuters