Zegna shines at Nyse

«Until a year ago I said I didn't want to go on the stock exchange, then I totally changed my mind thanks to an excellent partner, Andrea Bonomi. It's a historic step, a good feeling», said Gildo Zegna during an interview with Class Cnbc editor Andrea Cabrini. «Seeing the symbol of my family's company on the Nyse ticker represents a challenge won». To sound the opening bell that every morning on Wall Street kicks off the trading day, decreeing the debut of the company with the symbol Zgn and a price per share of $ 10.30 (€ 9.12), was the ceo Gildo Zegna flanked by Andrea C. Bonomi, founder of Investindustrial and chairman of the Industrial advisory board. During the course of the session, the share touched double digit gains. Also present to share the excitement of ringing the bell were American fashion designer Thom Browne, founder of the eponymous brand that entered the Piedmont group's orbit in 2018, Paolo Zegna, Zegna's board member, Investindustrial acquisition corp chairman Sergio Ermotti, creative director Alessandro Sartori and other members of the Zegna and Thom Browne leadership teams.

Announced last July, yesterday's listing is the result of the completion of the integration between Ermenegildo Zegna and Iac-Investindustrial acquisition corp, a special purpose acquisition corporation sponsored by investment subsidiaries of Investindustrial VII. As detailed in recent months, the Zegna family will continue its long-term management of the historic company specializing in luxury men's clothing through an ownership stake of nearly 66 percent. «We want to show that Italian fashion is second to none. We are ready to achieve beautiful organic growth with both Zegna and Thom Browne, focusing our resources and time on the industry and strengthening the supply chain, while keeping our Dna intact, which is the reason we are still here after 111 years», Gildo Zegna then said during the press conference live from Wall street, reiterating once again that he has no intention of creating an Italian luxury conglomerate.

«If there are interesting opportunities of another kind we will seize them, as we did with Thom Browne. In recent years both our brands have benefited from each other's expertise and the ipo will not make us change our strategy». According to the company's announcement in recent days, the business combination provided about $761 million (about €677 million) in gross proceeds (before transaction expenses and share repurchases from controlling shareholders). These consisted of $169 million (nearly €150.5 million) in cash from Iiac's trust account, a fully committed $250 million (€222.4 million) pipe that, in light of strong investor demand, was increased by $50 million (about €44.5 million) over the original target amount, by 125 million (111.2 million euros) from the additional backstop pipe previously announced and among whose investors, according to rumors, there would also be the ceo of the Prada group, Patrizio Bertelli, and finally by approximately 217 million (193 million euros) in a forward purchase agreement with Shg-Strategic holding group, an affiliate of Iiac's sponsor.

This investment, along with the related sponsor promotion shares accrued at closing and investments in pipe and pipe backstop financing, provides Shg with approximately 13% of the outstanding common stock. «Italian entrepreneurs have always been open to global challenges and I believe Zegna will be an example, not because all tricolor companies should list in America, but because Italy has nothing to feel inferior to the French for and has an unparalleled role in fashion» Andrea Bonomi added during the interview with Andrea Cabrini. «Companies are moving from fashion to luxury and there is no shortage of capital. Whether private equity or the stock market, international investors are now there. This is a really positive moment for our country and we must not lose it».

During the negotiations, Ubs investment bank acted as exclusive financial advisor to the Ermenegildo Zegna group and as co-lead placement agent of the pipe, with a team led by the country head of Ubs Italy, Riccardo Mulone. Sullivan & Cromwell acted as legal advisor. Deutsche Bank, Goldman Sachs bank Europe, Se - Succursale italiana, JP Morgan securities and Mediobanca acted as financial advisors to Investindustrial acquisition corp. Deutsche Bank, Goldman Sachs & Co. and JP Morgan securities acted as co-lead placement agents on the pipe. Finally, Mediobanca provided an equity opinion to the board of directors of Investindustrial acquisition corp, while Chiomenti and Kirkland & Ellis acted as legal advisors to Investindustrial acquisition corp and Shearman & Sterling as legal advisors to the placement agents. (confidential reproduction)