(Bloomberg) -- Golden Goose Group SpA is set to price its initial public offering near the bottom end of a marketed range amid concerns over the outlook for European luxury stocks.

The company’s IPO was priced at €9.75 a share, according to terms seen by Bloomberg, after it was marketed for €9.50 to €10.50. Assuming all 61.1 million shares are placed, the total offering size could be as much as €595.7 million ($639 million), valuing the company at about €1.7 billion, according to Bloomberg calculations. 

Golden Goose shares are set to start trading on June 21.

The pricing comes during a turbulent period for European stocks, with volatility unleashed by political upheaval in France after President Emmanuel Macron’s snap election announcement sparked a market rout. Citigroup Inc. strategists downgraded the region’s equities to neutral, amid warnings that risks could threaten new European listings. 

Demand concerns are also weighing on the luxury sector. The MSCI Europe luxury index has dropped by around 3% this month, with shares of brands such as Moncler SpA, Burberry Group Plc and Louis Vuitton owner LVMH down by a similar margin or more.

The “environment remains quite challenging and volatile, with Western consumption under pressure and Chinese sentiment and consumption not picking up much,” said Jelena Sokolova, an analyst at Morningstar. There were also questions about “what would happen to them if the demand for their specific shoe style cools and whether they can successfully diversify or not,” she said.

Milan Listing

Among a number of firms seeking debuts in Europe, Golden Goose’s IPO will be Milan’s biggest since at least the €599 million sale by gambling company Lottomatica SpA in May last year. Earlier Tuesday, bakery firm Europastry SA announced plans for an initial public offering on Spanish stock exchanges.

Golden Goose was set to sell about 10.5 million shares, while majority-owner Permira was to offer 43.6 million existing shares, according to a previous statement. Invesco Advisers Inc. had agreed to be a cornerstone investor taking a €100 million stake at the final price. 

Golden Goose is targeting net sales of about €1 billion by 2029, up from €587 million last year. The company plans to use the IPO proceeds to pay down debt.

Bank of America Corp., JPMorgan Chase & Co., Mediobanca SpA and UBS Group AG are arranging the offering. 

--With assistance from Kit Rees.

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