MILAN — Italian Design Brands, one in all the nation’s largest high-end furniture and design holdings, confirmed Tuesday that its initial public offering will go ahead as planned throughout the first half of the yr, market conditions permitting. 

Established in 2015 by Private Equity Partners and a select group of investors through an organization called Investindesign, the Milan-based company plans to list its shares on the Euronext exchange and maybe the Star segment of the Milan Stock Exchange, its chairman and chief executive officer Andrea Sasso told WWD in an announcement.

“IDB’s listing project on Euronext Milan and, if the conditions are right, on the Star segment, stays valid and confirmed for the primary half of this yr, market conditions permitting,” Sasso said.  “The IPO is an incredible pull factor for our corporations, which can help herald recent talent and top-level managers,” he added. 

On Tuesday, the group reported that its adjusted net profit almost doubled in 2022, reaching 25.5 million euros, in comparison with 13.3 million euros in 2021. Sales also rocketed 84.8 percent on a pro-forma basis to 266.5 million euros. Italian Design Brands’ adjusted earnings before interest, taxes, depreciation and amortization rose 111 percent to 49.2 million euros in 2022, with a pro-forma margin of 18.5 percent, up from 16.2 percent in 2021, IDB said.

The 2022 pro-forma data was compiled in accordance with the IFRS international accounting standards to incorporate the 12-month results of two recent acquisitions. 

In June 2022, IDB acquired the vast majority of Gamma Arredamenti International, an Italian company specializing within the production of upholstered furniture. In an operation that was finalized earlier this yr, IDB entered into the kitchen and systems sector with a majority stake in Cubo Design, an Abruzzo, Italy-based company which owns the Binova and Miton Cucine brands, specializing within the production of modular kitchens and systems.

In total, IDB’s portfolio includes 10 corporations and 13 brands including upscale furniture brands Saba Italia, Gervasoni, Meridiani, lighting corporations Davide Groppi, Axolight and Flexalighting in North America, in addition to luxury contract corporations like Modar and Cenacchi International, which makes installation of luxury furnishings for stores, showrooms, offices, hotels and prestigious homes anywhere on this planet.  

The corporate’s luxury contract business surged 73.6 percent in 2022 to 68.3 million euros, while its furniture business rose 39.6 percent to 117 million euros on a pro-forma basis.

Last yr, about 75 percent of the group’s turnover was generated by exports to 130 countries, lifted by extra-EU markets, particularly the U.S., IDB said.

As reported in 2022, Citigroup and Equita remain the group’s joint global coordinators, an IDB spokesperson confirmed.

Italian Design Brand’s founders have envisaged an IPO since its inception, making it possible to lift the capital to keep up growth rates, usher in recent talent and attract top managers.

Market-wide, the war in Ukraine delayed stock market listings in Italy last yr and market headwinds proceed to hinder corporations from listing.

Design Holding, one other major Milan-based company owned by private equity firms Investindustrial and Carlyle, which incorporates B&B Italia, lamp-maker Louis Poulsen, and lighting brand Flos, can be expected by market watchers to list its shares within the near term. In 2021, Fendi partnered with Design Holding to create Fashion Furniture Design, or FF Design, which develops the brand’s Casa business. Design Holding was not available for comment at press time.

Based on a report released in April 2022, by Fondazione Symbola, Deloitte Private and Poli, Italy’s design sector is the world’s largest, home to 30,000 corporations and fueled by 61,000 employees in 2020.

Aided by demand to renovate and update personal and business spaces, Italy’s wood furnishing sector saw a 12.7 percent rise in 2022 versus 2021, increasing its value to 57 billion euros versus 43 billion euros in 2019, in accordance with preliminary figures for 2022, released by wood furnishings consortium Federlegno Arredo.

As Italian firms prepare for Milan Design Week, which runs from April 17 to 23, eyes will turn to the total yr 2023 outlook.