Question: 3 . Why does Prada need to raise additional funds? 1 0 - 4 . Do you agree with the decision to list an IPO,

3. Why does Prada need to raise additional funds?
10-4. Do you agree with the decision to list an IPO, or should Prada have borrowed more money, possibly floating a dim sum bond or a Eurobond in London or elsewhere?
10-5. What do you feel are the best justifications for Prada to issue the IPO in Hong Kong? Are there
any downsides to their decision to list in Hong Kong?
10-6. Many of the other luxury fashion companies are also largely family owned. What is the impact to
Prada of diluting the family ownership, and is this a model that other companies can be expected
to follow?
10-7. What types of foreign exchange risk does Prada face, and what advice would you give them to
hedge against their risks?

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