German perfume retailer Douglas is contemplating a public listing in the first quarter of the year, according to sources familiar with the matter. This potential IPO could serve as a significant test for European initial public offerings (IPOs) in 2024.
Douglas, which is backed by private equity firm CVC, plans to disclose its earnings for the Christmas season in the upcoming weeks, with the intention of listing on the Frankfurt Stock Exchange by March, provided that market conditions are favorable.
Confidential sources indicate that the IPO could value the CVC-owned retailer at up to 7 billion euros ($7.65 billion). However, it is important to note that no final decision on the timing has been made, and the IPO plans may face potential delays. When approached for comment, Douglas declined to provide any information.
The proceeds generated from the IPO would be utilized to assist in reducing the company’s debt burden, as stated by the sources. At the end of September, Douglas had a net debt of 3.4 billion euros, which included store leases, equating to approximately 4.7 times its adjusted core earnings.
Under the leadership of CEO Sander van der Laan, Douglas experienced a 12% increase in sales, surpassing 4 billion euros in the fiscal year ending in September 2023. The company recorded adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) of approximately 726 million euros ($795.91 million) during the same period.
