Italian fashion house Prada, which is preparing for an initial public offering (IPO) of about $2 billion in Hong Kong, said it expects profit to rise as it widens its foothold in Asia.

The Milan-based maker of cutting-edge leather bags expects profit of at least 150.7 million euros ($215.3 million) for the six months to July, according to a filing with the Hong Kong stock exchange yesterday.

Net income more than doubled to 253.6m euros by January 2011 from a year earlier, the filing showed.

Prada plans to use most of the proceeds from its Hong Kong listing on expansion and renovation of its stores over the next 18 months as the company bets on increasing demand for luxury products in China and the rest of Asia.

Acceleration of store openings in key emerging markets is cited among the drivers for revenue and margin growth at Prada in unpublished equity research by Goldman Sachs for potential investors.

"Our growth over the past five years has largely been driven by growth in the high growth and rapidly developing Asian markets, and particularly in China. We believe that there is still substantial potential for growth in Asia Pacific," Prada said.

Investors expect the Prada offering to come at a premium to European peers, given its growing exposure to Asia, brand appeal and prospects of higher profits and margins.