There has been an upsurge in trading in the "going public" convertible bond from Prada as the Italian fashion house moves towards an initial public offering by the summer.
Prada postponed an IPO twice last year and in December 2001 the company turned to the equity-linked market to raise €700m ($637m). If the fashion house goes public within three and a half years of the bond issue, the paper converts into an exchangeable issue with a three-year maturity from the date of the IPO. If Prada does not float within this time period the bond is redeemed for cash.
