Moleskine Shares Slip After Positive Debut in Milan

MILAN--Italian notebook maker Moleskine SpA's (MSK.MI) shares slipped on their first day of trading following its initial public offering, the first on the Milan bourse in almost a year.

The stock closed 0.87% lower at 2.28 euros, after rising as much as 3% in early trading. The shares were priced at EUR2.30 in the IPO.

The benchmark Italian FTSE Mib index Wednesday fell 2.28%, following a general European trend and on ongoing political uncertainty in the country.

"Someone expected an even better performance, but this is fair considering the current market phase," a trader said.

Founded in 1997, Moleskine is most widely known for its pocket-sized notebooks that emulate those used by writers Ernest Hemingway and Jack Kerouac.

The IPO is only the third listing on Milan's main stock exchange since 2011. The other two were Brunello Cucinelli SpA (BC.MI) and Salvatore Ferragamo SpA (SFER.MI), brands that are well known outside Italy, which have increasingly relied on foreign revenues to offset weaker domestic-market performance.

A high foreign growth potential made them appealing IPOs from an investors' perspective, which is also what supported interest in Moleskine.

"These companies all have a very diverse worldwide market they can rely on," eliminating uncertainty related to Italy's political situation, said Andrew Caldwell, who evaluates private companies, shares and assets for U.K. consulting firm BDO LLP.

But generally southern European companies are wary of going public, because of the weak economies and market volatility. By comparison, a surge in initial public offerings is expected in northern European stock exchanges in the coming months.

Defying some bankers' fears that raising money would be difficult, Moleskine's shares drew strong demand during its IPO, with the offer more than 3.6 times oversubscribed, the company said in a statement. The notebook maker sold about 106 million shares, priced at the middle of the proposed range.

In 2012, Moleskine reported an adjusted net profit of EUR19.7 million, a rise of 25% compared with the year earlier. Adjusted revenue was EUR78 million, 17% higher on year. The company's market value is around EUR488 million.

About half of the company's sales came from Europe -- with only 10% coming from Italy -- and more than a third came from the Americas, the company reported.

Write to Manuela Mesco at [e-mail]

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