High-end Italian clothier Ermenegildo Zegna and fashion retailer Benetton Group SpA have both bought shares in luxury fashion firm Brunello Cucinelli SpA, which this week completed an initial public offering in Milan.

Cashmere specialist Cucinelli described its IPO as an "enormous success," with the final price set at EUR7.75 per share - which is at the top of the planned range. It said the order book was 17 times higher than the available shares. Benetton bought a 2% stake in the firm, while Ermenegildo Zegna took 3%.

The offer means the new company, which will debut on the Milan bourse on 27 April, will have a market capitalisation of EUR527m (US$697m).

Brunello Cucinelli, which was founded in 1978, employs over 700 people and in 2011 saw its net turnover rise 19% to EUR243m. 70% of its sales were achieved overseas, and EBITDA soared 68% to EUR40m.