Prada's Stock Performs Well on Hong Kong Stock Market Launch

Posted on June 25, 2011

Prada's stock debuted on the Hong Kong exchange on Friday. The stock ended the day at 39.6 Hong Kong dollars per share ($5.08 U.S.), which was pretty much flat from the opening. The performance of the new fashion stock is actually better than what analysts were projecting, due to the grim global economic news which has been a drag on the Hang Seng Hong Kong stock exchange. The offering was five times oversubscribed which isn't is as great as it sounds. L'Occitane was 159 times oversubscribed when it debuted. Prada is currently trading at a premium; its PE Ratio (Price to Earnings Ratio) is 23. Overall, it's a fairly promising debut for the Italian fashion brand's IPO. CNN's Ramy Inocencio reports: