Burberry braves the markets
GUS floats luxury brand at bottom of range
July 12 2002
GU has pushed ahead with the IPO of luxury goods brand Burberry.
The partial float has been priced at 230p a share, the bottom of 230-290p range set.
The volatile market had prompted speculation that GUS would withdraw the float, possibly in favour of a demerger at a later date. However GUS finance director David Tyler told journalists the company was confident the shares would trade well. Gus is retaining a 77.5 per cent stake in the business.
Burberry chief executive Rose Marie Bravo, who is set to become one of the UK’s highest paid female executives through the float, said: “Burberry has strong business momentum with multiple growth opportunities by product, channel and region. We look forward to creating further value for both our new and existing shareholders.”
Part of Burberry’s strength is seen as its potential for growing sales in key markets for luxury brands such as the USA and Asia.
