Puig, a multinational cosmetics, perfumery and fashion company based in Barcelona, announced this Monday its listing on the stock market. The company will place securities on the Spanish stock market to raise more than 2.5 billion euros and finance its growth. The approval process of the prospectus, which will detail the schedule for the stock market debut, is already underway and its approval by the CNMV is pending.
The group has brands such as Carolina Herrera, Rabanne, Charlotte Tilbury and Jean Paul Gaultier in its portfolio, and is currently controlled by the Puig family, which "will retain a majority stake and the vast majority of voting rights." It operates in 32 countries and in the last financial year it had a turnover of 4,304 million euros and earned 465 million, with double-digit growth in both cases.
"We believe that the balance of being a family company that is at the same time subject to market responsibility will allow us to compete better in the international beauty market during the next phase of development," argued its president, Marc Puig.
The IPO is a new stage for a company that has maintained "constant" growth and internationalization. “The announcement is a decisive step in the 110-year history of Puig -founded in 1914-. Thanks to our strategy of creating a portfolio of own brands, focusing on prestige (premium) products and expanding our leadership in niche fragrances, makeup and dermocosmetics, Puig has constantly recorded solid and profitable growth," said the manager. .
The operation is proposed on two fronts: 1,250 million euros will be raised with the issuance by the company of new class B shares (each one gives 1 voting right for the 5 of class A); and a similar or greater figure with the sale of existing shares of the majority shareholder, which is controlled by the family's holding company, Exea.
With the funds raised, the intention is to "continue growing" with a focus on premium beauty, increasing share in Europe or America and acquiring new brands. They will also serve to finance "any future strategic investment" and capital expenditures, it is specified. Also "the refinancing of the acquisitions of additional stakes in Byredo and Charlotte Tilbury." The net financial debt amounts to 1,196 million euros after the latest operations.
In a recent interview with La Vanguardia, Marc Puig had announced that jumping into the market was “one of the options” for the future that the company was considering. "Becoming a listed company will align our structure with that of the best family-owned companies in the sector worldwide, will help us attract and retain talent and will support the growth strategy of our portfolio and our brands," he added.
2023 was especially positive, with "double-digit growth in all segments and regions, outperforming the beauty market and the targets themselves." The EMEA region (Europe, Middle East and Africa) is the largest market, with 54% of net revenue in 2023. The Americas (36%) and Asia-Pacific (10%) are behind.
The company warns in the information published this Monday that the IPO may be affected by market conditions. Goldman Sachs and JP Morgan act as global coordinators and underwriters. The first is granted an over-allotment share purchase option of up to 15% of the offer.
Banco Santander, Bank of America, BNP Paribas, CaixaBank, BBVA and Sabadell also participate in the jump. Linklaters is the legal advisor to the company and Cuatrecasas, Gonçalves Pereira and Davis Polk
