Prada gets IPO approval

The fashion powerhouse, which owns Prada, Miu Miu and Church’s, reportedly expects to raise as much as $2bn from the sale of a 20% stake. Prada will be the first European company to list shares in Hong Kong.

What does it mean? First of all, it’s another major signal that luxury brands view Asia as their most important region in terms of growth. China is the world’s fastest-growing luxury goods market. In 2011, analysts expect luxury sales in the country to race ahead 25% to reach a total of €11.5bn. About a third of Prada’s stores are in the region, and they’re opening more every month.

The brands know how important Asia is, and so do potential investors. Prada’s decision is a canny move calculated to appeal to funds and investors ready to back continued luxury industry growth in the region.

Listing is expected on 23 or 24 June, according to news sources.