Smell the money: Puig Brands kicking off €2.6bn IPO
Puig Brands kicked off its €2.6bn initial public offering, set to be the largest in Europe so far this year, as the Spanish fragrance and cosmetics company seeks to capitalise on growing momentum in the region’s equity markets.
The Barcelona-based company and its founding family plan to sell Class B shares at €22 to €24.50 each, Puig said yesterday in a filing with the Spanish securities regulator.
Puig, whose brands include Jean Paul Gaultier, Rabanne and Carolina Herrera, would have a market value of as much as €13.9bn after the offering, according to terms seen by Bloomberg.
The company will sell enough new shares to generate about €1.25bn in proceeds, while the Puig family is offering stock to raise around €1.36bn.
The family may also sell as much as €390m worth of additional shares in an over-allotment option. The number of shares of both the main offering and the over-allotment will be determined by the final price of the IPO.
Puig’s implied valuation is higher than that of fragrance company Coty, but a long way off from beauty industry behemoths like L’Oreal or Estee Lauder.
In dollar terms, the listing surpasses Galderma Group’s 2.3 billion Swiss-franc (€2.4bn) sale last month as Europe’s largest so far this year.
If successful, Puig’s offering is expected to pave the way for more listings.
Companies have announced $7.5bn of IPOs this year in Europe, up 88pc from the same period last year.
However, stock market debuts have been mixed recently. Galderma shares have soared since the skincare company listed, while German perfume retailer Douglas has tumbled.
Puig’s listing will be watched closely by Spanish candidates to float, such as clothing retailer Tendam and Hotelbeds. Elsewhere in Europe, private equity firm CVC Capital Partners plans an offering in Amsterdam.
Puig was founded as a perfume company in 1914 by Antonio Puig. The bulk of its growth over the 20th century came from the distribution of well-known foreign goods by firms like Max Factor, and the production of perfumes under license for other brands.
Puig has focused in recent years on a segment known as “niche fragrance” by buying L’Artisan Parfumeur, Penhaligon’s and Byredo, and launching designer Dries Van Noten’s perfume line. The conglomerate also owns the latter’s fashion business.
The company is still led by the third generation of the founding family. Marc Puig is chairman and chief executive officer, while his cousin Manuel Puig Rocha is vice chairman.
The family will maintain a majority stake and hold more than 90pc of the voting rights, according to the filing.
Bloomberg