Prada's currently making about 2 billion Euros a year in sales, and investors are betting that the company is worth at least 6 billion Euros. The stock market debut could happen as early as July.
So why is Prada going public, and why is the company going public in Hong Kong instead of Europe, where it's based?
Companies do an IPO (initial public offering) in order to raise capital. The more money the company has, the quicker it can expand.
Which brings us to the next question. Most of Prada's expansion is in Asia. It is debuting on the Hong Kong bourse so that its investors will be able to measure the results more closely. Investing in Prada means investing in Asia's luxury retail business.