Prada SpA's initial public offering in Hong Kong is poised to raise as much as $2.6 billion, according to a person with knowledge of the matter.

The Milan-based company set a price range of HK$36.50 ($4.69) to HK$48 per share, said the person, who declined to be identified because the process is confidential. The IPO would raise $2 billion to $2.6 billion based on the range, the person said.

The maker of Miu Miu bags follows European companies, including L'Occitane International SA, in seeking to sell shares in Hong Kong, where IPOs reached a record last year.

By listing there, the Italian company is seeking to tap local funds as individual investors bet on the growth of the luxury-goods industry in Asia. Bagmakers Coach Inc and Samsonite LLC also plan to sell shares in Hong Kong.

China will remain the fastest-growing market for luxury goods in 2011 as sales rise 25 percent to 11.5 billion euros ($16.8 billion), said consulting company Bain & Co on May 3.

The country is on course to become the world's third-largest luxury market in five years, it predicted. Reuters reported the Prada price range earlier, citing an unidentified person. Diana Footitt, an outside spokeswoman for Prada, declined to comment.

Prada, which said in March it had net borrowings of 408.6 million euros, will be debt-free by 2014, according to estimates by Goldman Sachs Group Inc. Net income may rise to as much as 503 million euros in 2012 from 381 million euros this year, according to Intesa Sanpaolo.

Profit more than doubled to 250.8 million euros last year on growth in the Asia-Pacific region, where sales jumped 63 percent, Prada said on March 28. Total revenue rose 31 percent to 2.05 billion euros.

Intesa Sanpaolo, Credit Agricole SA's CLSA Asia-Pacific Markets, Goldman Sachs and UniCredit SpA are managing the IPO. Mizuho and Industrial & Commercial Bank of China Ltd are providing assistance as joint leads.

Prada, which postponed plans to list in 2008 because of adverse market conditions, sells clothing and accessories under the Prada, Miu Miu, Church's and Car Shoe brands.