Puig Goals to Elevate €2.5 Billion in IPO

Puig, the family-owned Spanish magnificence conglomerate, introduced plans for an preliminary public providing on the inventory exchanges in Barcelona, Madrid, Bilbao and Valencia. The corporate owns 14 manufacturers together with Charlotte Tilbury, Paco Rabanne and Byredo, in addition to numerous perfume licences.

The corporate hopes to boost €1.25 billion ($1.3 billion) by way of the primary spherical of IPO, adopted by a bigger secondary sale that might convey the overall fundraising north of €2.5 billion. The Puig household will retain a majority stake within the firm and the “huge” majority of voting rights, the corporate stated.

In 2023, Puig reported web revenues of €4.3 billion ($4.6 billion), up 19 p.c, whereas web revenue rose to €465 million ($503 million), up 16 p.c on the earlier yr.

In October 2023, chairman Marc Puig confirmed the group was mulling an IPO amongst different strategic choices to boost recent capital. In an announcement launched right this moment, Marc Puig stated the choice was a “decisive step” within the firm’s 110-year historical past, and that it was essential to make sure the “proper checks and balances” had been in place throughout a “generational transition.”

“We consider that the stability of being a family-owned firm that can also be topic to market accountability will enable us to higher compete within the worldwide magnificence market in the course of the subsequent section of the corporate’s improvement,” stated Marc Puig, including that being a publicly listed firm will align its company construction with these of best-in-class, family-owned firms within the world premium magnificence sector. Prime business gamers reminiscent of L’Oréal and Estée Lauder have lengthy been publicly traded, in addition to retaining founding household possession stakes.

The corporate plans to additional diversify into skincare and make-up, and give attention to prioritising manufacturers it owns outright quite than licenses, which will be costly to resume and disruptive after they lapse. 95 p.c of revenues got here from fully-owned or majority-owned manufacturers like Paco Rabanne, Dries Van Noten or Nina Ricci final yr, Puig stated.

The corporate has been making extra acquisitions of late – in January, it bought luxurious skincare model Dr. Barbara Sturm, following its acquisitions of Byredo and Charlotte Tilbury since 2020.

“Our distinctive and inventive DNA has allowed us to draw main founders and types… We strongly consider that constructing premium manufacturers requires long-term considering,” Marc Puig stated.

Presently, perfume is Puig’s largest income driver. However the group’s smallest phase, skincare, grew essentially the most in 2023, with revenues up 31 p.c to €431 million ($466 million). The corporate has lengthy been worthwhile, Puig added.

Be taught extra:

Luxurious Manufacturers Would possibly Assume Twice Earlier than Shopping for Again Their Magnificence Traces

Searching for larger possession — each of picture and revenues — extra vogue homes are wresting again management of their magnificence licences. However working a magnificence enterprise can stretch in any other case well-resourced, highly effective firms past their capabilities.

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