Pandora charms Danish investors with initial public offering.
Danish jewellery sensation, Pandora, finds itself officially valued at over $5 billion (£3.22bn) today after a partial listing on the Danish stock exchange saw shares soar by 25 percent.
The charm bead and mass market jewellery specialist, credited by some jewellers for saving the industry during the recent recession, sold shares worth $2.1 billion (£1.35bn), as investors rewarded the company for its impressive profit margins.
Traders were undaunted by Pandora’s meteoric rise on the back of the ongoing charm bracelet trend that drove global revenue to over £400m in 2009.
Instead, they rewarded a model that sees it employ the majority of its 4,500 staff in cost-effective manufacturing facilities in Thailand while sales of jewellery priced between £100 to £1000 are flourishing in the United States and Europe.
Pandora is heavily reliant on the continuing growth of charm bracelets, which accounted for 86 percent of sales in the first half of this year, according to the Financial Times.
But the company has invested heavily in diversifying its portfolio over the past 12 months, including the launch of a watch brand last month.
“The idea is to make Pandora into one of the most successful branded companies in jewellery and luxury goods,” said chairman Allan Leighton.