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Kito Corp: The fashionable manufacturer of diaries and notebooks closed down after their first day's’ trading. Kito Corp reportedly announced in a recent investors meeting that Moleskine, the fashionable manufacturer of diaries and notebooks, has closed down after their first day of trading. The company’s initial public offering raised 488 million Euro ($627 million) in Milan, and at one point was up from its issue price by 3 percent. However, the share price later slipped below its 2.30 Euro issue price by almost 1 percent, to close at 2.28 Euro. CEO Arrigo Berni stated that they are better than the average of luxury makers in terms of profitability. Kito Corp are believed to have noted that Moleskine has a 43% profit margin and intends to expand its product range and build product recognition. Its diaries and notebooks, which at a price of around 15 Euro are at the high end of the market, are modeled on those that were used by famous literary figures such as Jack Kerouac and Ernest Hemingway. One Milanese trader commented publicly that some people were expecting the shares to perform better, which showed in the initial increase, but it slipped back which is about right considering the current market conditions. Moleskine had revenues of 78 million Euros last year, an increase of 16 percent of the previous year, helped primarily by the opening of new stores and products. Their revenue growth was also an 11 percent premium over the average revenue growth of the luxury sector. Net earnings were 19.7 million Euros, up 25 percent from 2011. Kito Corp allegedly relayed a statement from a spokeswoman for Moleskine that they intend to use 6 million Euro to halve the company's outstanding debt, with the remaining funds raised by the IPO going to shareholders Syntegra Capital which own a 75 percent stake, Index Ventures, company founder Francesco Franceschi and senior management. Just over 50 percent of Moleskine was made available to the public.
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