Yahoo Finance Puig to Start Trading in Spain in May
PARIS — Puig plans to start trading in Spain on May 3.
The Barcelona-based beauty and fashion company said on Thursday afternoon that it would begin the book-building process on Friday for an initial public offering that could raise a total of 3 billion euros.
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On April 8, Puig said it intended to apply for admission of class B shares to the listing on the Barcelona, Madrid, Bilbao and Valencia Stock Exchanges and trade through the Automated Quotation System.
Buoyant equity markets and the promise of mitigating interest rates are helping drive interest in IPOs around the globe. In the beauty space, Galderma and Douglas floated in Europe last month.
The price range will fall between 22 euros and 24.50 euros per Puig share.
Puig’s offering will have a primary tranche of new shares targeting an equity raise of between 1.27 billion euros and 13.9 billion euros.
A larger, secondary offering of shares worth approximately 1.36 billion euros is then to be made by Puig SL, the group’s controlling shareholder that’s managed by Exea, the Puig family’s holding. Following the offering, the Puig family will retain a majority stake and the vast majority of voting rights in the company Puig.
Puig is granting Goldman Sachs Bank Europe SE an option to purchase, on behalf of the managers, over-allotment shares of up to approximately 15 percent the size of the base offering — equating to up to 390 million euros.
The group has said it will use the proceeds from the equity raise to finance the acquisitions of additional interest in Byredo and Charlotte Tilbury, and to finance other investments and capital expenditures.
The Puig family has been the sole owner of the company Puig since its start in 1914.
Marc Puig, chairman and chief executive officer of Puig, called the IPO news “a decisive step in Puig’s 110-year history,” in a statement earlier this month.
“Thanks to our strategy of building up a portfolio of owned brands, focusing on prestige products, and expanding our leadership in niche fragrances, makeup and dermocosmetics, Puig has consistently delivered strong profitable growth,” he said.
“Our unique and creative DNA has allowed us to attract leading founders and brands, establishing long-term partnerships and helping them grow while preserving their legacy,” the executive continued. “We strongly believe that building premium brands requires long-term thinking and having a family behind a company fosters this long-term approach, because they tend to care in equal measure about the time horizon of the next generation and the next quarter.
“At the same time, it is important for any family business to have the right checks and balances in place, particularly during generational transitions,” Puig continued.
The third generation of Puig family members, of which he is a part, will be the last to be involved operationally in the running of the company.
“We believe that the balance of being a family-owned company that is also subject to market accountability will allow us to better compete in the international beauty market during the next phase of the company’s development,” Puig said in the statement. “Additionally, we believe that becoming a publicly listed company will align our corporate structure with those of best-in-class, family-owned companies in the premium beauty sector globally, help us to attract and retain talent and support the growth strategy of our brands and portfolio.”
Puig operates across 32 countries with 17 brands. The largest of those sales-wise are Rabanne, Charlotte Tilbury and Carolina Herrera. Ninety-five percent of company net revenues last year, which reached more than 4.3 billion euros, came from Puig’s fully or majority-owned brands.
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