08 Apr 2024 --- Today, Spanish company Puig announces plans to go public, making it one of Spain’s largest initial public offerings (IPO) in years. The family-owned company will proceed with the IPO of its class B shares.
According to a release, the luxury cosmetics group aims to raise €1.25 billion (US$1.35 billion) in a primary offering, followed by a more significant amount of existing stock through the IPO. According to reports, the group sale might bring in over €2.5 billion (US$2.7 billion).
Puig intends to apply for admission of the shares to listing on the Barcelona, Madrid, Bilbao and Valencia Stock Exchanges and trading through the Automated Quotation System.
The fashion, fragrance and makeup company owns brands such as Charlotte Tilbury, Jean Paul Gaultier, Carolina Herrera and Rabanne.
“Generational transition”
Bankers have valued the company between €8 billion (US$8.65 billion) and €10 billion (US$10.82 billion). Following the offering, the comapny says the Puig family will retain a majority stake and most of its voting rights. The filing did not specify what proportion of shares the Barcelona-based company wants to sell to investors.
Puig has enjoyed strong revenues exceeding €4.3 billion (US$4.7 billion) in revenue. It closed last year with “record results” for the third consecutive year, with a 19% increase in its 2022 performance.
Marc Puig, chairman and CEO of Puig, says: “Today’s announcement is a decisive step in Puig’s 110-year history.”
Charlotte Tilbury owner is going public (Image credit: Charlotte Tilbury).“It is important for any family business to have the right checks and balances in place, particularly during generational transitions. 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.”
“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.”
Companies going public
Personal Care Insights recently reported on investor confidence in a beauty-led resurgence of Europe’s IPO ecosystem, creating eyes on the market debuts of Swiss skin care brand Galderma and the perfumery and cosmetics retailer Douglas.
However, Douglas’ stock fell more than 12% upon its return to the Frankfurt Stock Exchange after ten years, while Galderma saw more promising gains on the SIX Swiss Exchange, with shares leaping 20.75% on its first day of trading.
Last year, Johnson & Johnson’s consumer health subsidiary Kenvue transitioned from private to public ownership with a momentous US$47 billion IPO.
By Sabine Waldeck
