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Jimmy Choo set for London IPO as owner JAB approves sale

Jimmy Choo Ltd. plans an initial public offering in London next month, betting that consumer demand for its $1,995 Lust peep-toe sandals can draw investors as larger luxury companies confront slumping demand in Asia.

Shoes and handbags at a Jimmy Choo Ltd. store in London. Jimmy Choo plans an initial public offering in London next month as larger luxury companies confront slumping demand in Asia.
Shoes and handbags at a Jimmy Choo Ltd. store in London. Jimmy Choo plans an initial public offering in London next month as larger luxury companies confront slumping demand in Asia.Read moreBloomberg, File

Jimmy Choo Ltd. plans an initial public offering in London next month, betting that consumer demand for its $1,995 Lust peep-toe sandals can draw investors as larger luxury companies confront slumping demand in Asia.

Owner JAB Holdings is seeking to sell at least 25 percent of Jimmy Choo, aiming for a stock market debut at the end of October, the London-based shoemaker said Tuesday in a statement. The company is seeking a valuation of about $1 billion, people familiar with the situation have told Bloomberg News, asking not to be identified because it was confidential.

"Luxury is not a very popular sector today, but small players still command valuation premia," said Exane BNP Paribas analyst Luca Solca. "That could make an IPO interesting."

Jimmy Choo is pursuing an IPO as unfavorable exchange rates and a general fall in consumption take a toll on luxury groups such as LVMH Moet Hennessy Louis Vuitton SA, the world's biggest. Prada SpA last week reported its slowest revenue growth in three years. The Bloomberg Industries luxury peer group has fallen 8.5 percent this year.

"The market is difficult for some companies that have been in China for a long time," Jimmy Choo chief executive officer Pierre Denis said. "There are still opportunities for specialist brands."

Choo's revenue is growing at a high double-digit pace in China, where it aims to expand, and more than 20 percent in Japan, according to Denis. The company, whose shoes were made famous by the character Carrie Bradshaw in Sex and the City, benefits from high awareness and limited distribution in Asia, where consumers are tiring of widely distributed brands, according to Neev Capital.

IPOs in London have raised about $24 billion this year, the most since 2007. Jimmy Choo would follow luxury companies including Moncler SpA and Brunello Cucinelli SpA in selling a stake on European stock markets in the last two years.