Market uncertainty and high interest rates hamper the fashion chain’s IPO plans Tendam (owner of brands such as Cortefiel, Pedro del Hierro and Women’Secret, among others), as stated this Monday by its president and CEO, Jaume Miquel.
“Until the American elections are clarified and rates in the United States are lowered in a clearer way, it will be difficult to IPO for medium-sized companies. If it is a very large firm in sectors that are in fashion such as health, defense or technology, it may be easier, but in consumption it is more complicated,” said Jaume Miquel at a business event organized by the newspaper The Economist.
In June, Tendam postponed its IPO plans until after the summer due to the effects of political turmoil on stock markets.
The third largest fashion retail company in Spain, owner of brands such as Cortefiel and Pedro del Hierro, planned to go public before February 2025.
However, Miquel said it is now too complicated for a retail company to go public until the uncertainties are resolved. “The door is neither closed nor open. The company is prepared. The company is doing well. And the day when sufficient market conditions are met, we will talk,” said the first director of the fashion company.
Miquel explained that going public before the summer was a possibility as there were “sufficient conditions to go out”, but he acknowledged that the “reality is that it was not like that.” “We have not managed the company to go public, we have done it so that it grows, because it will continue to grow and the roadmap remains the same,” he stressed. However, the president of Tendam recognized that going public is the “natural space” for a firm that is growing at a rate between 6% and 8%, where they also plan to offer an attractive dividend to shareholders above 4%. .
Venture capital companies CVC Capital Partners and PAI Partners They each own almost half of the company.
Tendam seeks to expand its fashion brands in Mexico and in countries in the Balkan region without losing sight of the United States, but Miquel ruled out expanding to Asian nations such as China, since he does not see space there for European retailers. “We believe that China continues to be an opportunity for luxury (…), but that the rest of the market will surely be for Chinese brands,” said Jaume Miquel.
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