Italian fashion house Prada, which is seeking to raise up to $2.6 billion (1.6 billion pounds) through a Hong Kong IPO, has generated five times demand for its offer.
The source declined to say which institutions have committed funds to the IPO or at what price point was the book covered. The information was based on road shows up to last Thursday, the source added.
The Milan fashion house, known for its leather handbags, brightly-coloured shoes and long boots, launched the retail portion of the IPO on Sunday.
It set an indicative price range of HK$36.5 ($4.69) to HK$48 ($6.17) a share for the IPO, confirming a Reuters story issued last week. That values the company between $11.4 billion and $14.6 billion.
The source declined to be indentified as the information is not public. A Prada spokesman declined to comment.
Strong demand for Prada's initial public offering comes at a time when investors have balked at some recent Hong Kong offers amid choppy stock markets.
