Golden Goose, popular sneaker brand of Taylor Swift and Reese Witherspoon, postpones IPO amid turmoil in Europe

Golden Goosean Italian luxury sneaker brand, has decided to postpone its IPO on the Milan Stock Exchange due to the prevailing political uncertainty in Europe.

What happened: The company, known for its high-end sneakers, has postponed its IPO scheduled for June 21, citing recent political unrest in Europe as the main cause of market volatility, Reuters reported.

Golden Goose, owned by a private equity firm Permiraaimed for a market capitalization of up to 1.86 billion euros ($2 billion), below initial expectations. The company, which sells shoes for about 500 euros a pair, said it would consider resuming the IPO at a more opportune time.

The recently announced early parliamentary elections in France have had a significant impact on the luxury sector, including companies such as Moncleragainst which Golden Goose’s price was set. Moncler shares fell 2.7% on Tuesday and have fallen nearly 6% since the announcement of Golden Goose’s IPO plans.

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Why it is important: Golden Goose’s decision to delay its IPO comes just a month after the brand announced its plans to go public, boasting a $3.3 billion valuation. The company’s unique approach to sneaker design, which often features a worn-in look, has earned it a celebrity following, including stars such as Taylor Swift, Selena GomezAnd Reese Witherspoon regularly presents its products.

Despite the postponement of the IPO, Golden Goose’s business continues to run well. The asset manager Invesco acts as a cornerstone and investors are showing great interest. The company’s IPO was several times oversubscribed, with bookrunners estimating a share price between 9.50 euros (10.21 US dollars) and 10.50 euros (11.28 US dollars).

It remains to be seen how the political situation in Europe will develop and whether it will impact other companies planning an IPO in the near future.

Image via Shutterstock

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This story was created with Benzinga Neuro and edited by Shivdeep Dhaliwal