1The assignment is based on the following documents and the same is used for the solution:-A case study: 'Prada's Hong Kong IPO'-Prada IPO prospectus-An Excel file containing daily share price of Prada from its IPO to June 2014 (1913.HKshare price)-Prada's Annual Report 2013Question (i)(a)Prada may have been motivated to go public to:-Raise funds for the firm (which would go to improvements and expansion of their ownedstores, pay off some debt and provide working capital.-Raise funds for the owners and the investor bank, these would be the existing shares soldin the IPO.-Create an impact on the business i.e. facilitating of future financing opportunities andcreate brand awareness etc.(b)Prada chose to list on the Hong Kong Stock Exchange because-It had established itself as a major listing venue and was on top of the charts in 2009 and2010.-There was a 10-15% price premium companied anticipated in comparison to othermarkets-Luxury multiples where at a 3-year high and in line with 10-year averages-Prada checked most boxes for a foreign listing and the Chinese government offered manyincentives.-There were probably less stringent and light on regulations in comparison to othermarkets