Italian luxury group Ermenegildo Zegna N.V. officially launched its long awaited initial public offering today as it started trading on the New York Stock Exchange under the new ticker “ZGN” this morning. The move signifies the completion of its business combination with Investindustrial Acquisition Corp. a special purpose acquisition corporation sponsored by investment subsidiaries of Investindustrial VII L.P.
The Zegna family will continue its long-term stewardship of the Company through an ownership stake of nearly 66%. Based on the transaction value, the merged entity is expected to have an initial enterprise value of $3.1 billion, an initial market capitalization of $2.4 billion and will be well capitalized.
The business combination received the strong support of IIAC’s shareholders at a meeting held on December 15, 2021, at which over 97% of the votes cast were in favor of the transaction.
The opening share price was $10.30 and ALREADY had risen to $10.75 by 1:25 pm.
Ermenegildo Zegna, CEO of Zegna Group, rang the opening bell at the New York Stock Exchange at 9:30 am today and was joined by Thom Browne, members of the
Zegna and Thom Browne leadership teams, by Zegna Board member Paolo Zegna, and by Andrea C. Bonomi, Founder of Investindustrial and Chairman of the Industrial Advisory Board, and Sergio Ermotti, Chairman of Investindustrial Acquisition Corp.
Ermenegildo “Gildo” Zegna, CEO of Zegna Group, said in n official statement: “Today marks a monumental milestone for Zegna and is the beginning of an exciting and pivotal new chapter in our 111-year legacy. What began as a wool mill built by my grandfather has now become a publicly traded, modern luxury group with a one-of-a-kind manufacturing platform, sophisticated digital operations and global scale and reach. We are well positioned to accelerate the successful strategies of the Zegna Group’s two core brands, Zegna and Thom Browne, while also continuing to build upon our heritage, our ethos of sustainability, and the unique craftsmanship that has made our name synonymous with excellence and luxury around the world. We will continue to meet our clients’ changing needs while working to attract new, younger clients through exciting collaborations and digital innovation across the Group.”
He continued, “I am very happy with the Zegna Group’s performance. Our enhanced focus on our legacy brand, the strengthening of our luxury textile platform and the dynamic pace of Thom Browne have supported a strong recovery this year, which has accelerated over the summer and continues today with solid growth in revenues relative to the same period of 2020. At the end of November 2021, the Group’s worldwide performance year-to-date is substantially in line with pre-Covid-19 levels. We are confident in our ability to further strengthen our leadership position in the global luxury market while keeping sustainability and care for the people around us at the heart of everything we do. Today’s announcement unlocks the doors to a brighter future – while we continue to follow our own path.”