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