Italy based luxury fashion house group Ermenegildo Zegna is looking forward to get listed on the New York Stock Exchange through a $3.3 billion merger deal with a Special Purpose Acquisition Company (SPAC).
This deal will help the company expand its operations in the United States and Asia. The company’s chief executive officer, Gildo Zegna, says the COVID-19 pandemic affected the fashion industry significantly however this didn’t push them back from going public.
“We could have remained private for another 100 years, but the timing was perfect and the world of luxury has become very challenging,” said the CEO.
The company will be using proceeds from its listing to expand its operations, and boost its markets spending to enable it compete with bigger players in the fashion business industry.
According to the merger deal, the Zegna family will sell some of its stake in the company and own 62% of the merged company which is being roughly valued at $2.5 billion.
The company is also aiming to increase its market share in China which accounted for 35% of the total $1.9 billion sales it made in 2019 in China and United Sates before the pandemic.