Puig Manufacturers SA kicked off its €2.6 billion ($2.8 billion) preliminary public providing, the biggest in Europe up to now this 12 months, because the Spanish perfume and cosmetics firm seeks to capitalise on rising momentum within the area’s fairness markets.
Puig and its founding household plan to promote Class B shares at €22 to €24.50 every, the Barcelona-based firm mentioned Thursday in a submitting with the Spanish securities regulator.
Puig, whose manufacturers embrace Jean Paul Gaultier, Rabanne and Carolina Herrera, would have a market worth of as a lot as €13.9 billion after the providing, in response to phrases seen by Bloomberg.
Puig will promote sufficient new shares to generate €1.25 billion in proceeds, whereas the Puig household is providing inventory to boost €1.36 billion. The variety of shares might be decided by the ultimate value of the IPO.
In greenback phrases, the itemizing surpasses Galderma Group AG’s 2.3 billion Swiss-franc ($2.6 billion) sale final month as Europe’s largest up to now this 12 months.
If profitable, Puig’s providing is predicted to pave the way in which for extra listings. Firms have introduced $7.5 billion of IPOs this 12 months in Europe, up 88 p.c from the identical interval final 12 months.
But inventory market debuts have been blended lately. Galderma shares have soared for the reason that skincare firm listed, whereas German fragrance retailer Douglas AG has tumbled.
Puig’s itemizing might be watched carefully by Spanish candidates to drift equivalent to clothes retailer Tendam and Hotelbeds, which reportedly delayed its IPO till after the summer season. Elsewhere in Europe, personal fairness agency CVC Capital Companions plans an providing in Amsterdam.
Household Enterprise
Puig was based as a fragrance firm in 1914 by Antonio Puig. The majority of its development over the twentieth century got here from the distribution of well-known international items by corporations like Max Issue, and the manufacturing of perfumes underneath license for different manufacturers.
Puig has centered in recent times on area of interest manufacturers by shopping for L’Artisan Parfumeur, Penhaligon’s and Byredo, and launching designer Dries Van Noten’s fragrance line. It additionally owns magnificence model Charlotte Tilbury.
The corporate remains to be led by the third technology of the founding household. Marc Puig Guasch is chairman and chief govt officer, whereas his cousin Manuel Puig Rocha is vice chairman. The household will keep a majority stake and maintain “the overwhelming majority of the voting rights,” Puig mentioned April 8.
Puig’s income rose 19 p.c final 12 months to €4.3 billion, with its make-up enterprise — albeit a lot smaller than fragrances and trend — up 23 p.c. The corporate’s revenue margin elevated to twenty p.c final 12 months from 17.7 p.c in 2021.
Nonetheless, the IPO comes amid indicators from rivals that client demand for magnificence merchandise is cooling. Shares of Ulta Magnificence Inc. on April 3 tumbled probably the most since March 2020 after executives signalled demand was slowing, weighing on the shares of friends as effectively.
The share sale begins Friday and can run by way of April 30, with the primary day of buying and selling set for Might 3 on the Madrid Inventory Alternate underneath the image PUIG, in response to the phrases. Puig introduced its intention to record, together with the quantity the corporate deliberate to boost, on April 8.
Goldman Sachs Group Inc. and JPMorgan Chase & Co. are main the IPO, with Financial institution of America Corp., BNP Paribas SA, CaixaBank SA and Banco Santander SA as joint bookrunners.
By Clara Hernanz Lizarraga
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Puig Goals to Increase €2.5 Billion in IPO
The family-owned premium magnificence conglomerate has confirmed it would float shares on the Spanish inventory change whereas retaining majority management, following months of hypothesis.
