The protest against the Italian taxman has reached the Hong Kong oxen park. From the former British colony, in fact, comes the protests of domestic investors kept away from the offer of Prada shares by the problems of double taxation on capital gains and dividends. “We had booked - a spokesman for Phillips securities, which specializes in IPO subscriptions to be resold to retail - explains to the Financial Times - securities for 10 million Hong Kong dollars in anticipation of strong demand: in reality, as of Wednesday, we resold only a quarter". And yet, just a month ago, the shares of the "Milan Station", a chain of luxury handbag and leather goods stores, had registered bookings for 123 million, two thousand times the offer.
The mystery, which shouldn't weigh on the fate of the IPO reserved for 90 percent to institutional investors, can be explained by the absence of a treaty on double taxation between Hong Kong and Italy. The private individual of the island who buys a Prada stock, therefore, unlike the big investors, will see the dividend coupon cut by 27% and will incur a 12,5% capital gain. At least in theory, because the island's Stock Exchange doesn't seem to have the slightest intention of fulfilling the role of tax collector on behalf of Giulio Tremonti and Attilio Befera.
But the dossier remains pending: the negotiations between Italy and Hong Kong on double taxation have been going on for years, but they don't seem close to the finish line. A (small) extra knot for the luxury label, intent on raising at least 2,6 billion dollars from the IPO of 16 per cent of the capital, at a valuation equal to 27 times the 2011 profit. An ambitious goal in a negative market: in the last ten sessions, the Hang Seng index closed nine times lower. And Samsonite's debut on the list tomorrow should take place at a lower price than the placement price, given the latest prices on the "grey market".
