Puig, the Spanish beauty conglomerate known for brands like Paco Rabanne and Charlotte Tilbury, is gearing up for Europe’s most substantial IPO of the year. The family-owned firm plans to commence trading on May 3, with an anticipated market capitalization ranging from €12.7 billion to €13.9 billion. They aim to offer up to €3 billion worth of shares, representing 21 to 24 percent of their stock to external investors, while the Puig family will maintain a controlling interest.
Founded over a century ago in Barcelona, Puig will list on Madrid and other Spanish stock exchanges, with Goldman Sachs and JPMorgan leading the IPO process. The funds raised will be utilized for various corporate purposes, including refinancing acquisitions and supporting the growth strategies of its brands and portfolio.
Puig plans to offer approximately €2.6 billion worth of shares initially, with an additional option for Goldman Sachs to purchase an extra €390 million through an “overallotment” provision. The bookbuilding process will commence on Thursday and conclude on April 30. The final share price will be determined following the completion of the bookbuilding process, according to the company.
In terms of business review, Puig says the company ranks fourth in the global Selective Fragrance Market, with a market share of 10.9%VMS (value market share), according to Company Industry Sources as of 2023. In Puig’s Prestige brands, Rabanne reached €1 billion in revenue in 2023, and both Carolina Herrera and Charlotte Tilbury aspire to achieve the same milestone. Rabanne and Carolina Herrera are among the top 10 fragrance brands worldwide, according to Euromonitor. Additionally, Puig estimates that Charlotte Tilbury is the leading brand in the makeup market in the UK and ranks in the top five in the US in terms of VMS, according to Company Industry Sources as of 2023.
In the European Dermo-Cosmetics Region, which includes Portugal, Spain, Greece, France, Belgium, and Italy, Puig estimates that the company holds the third position in dermo-cosmetics within the pharmacy channel. This estimation excludes Isdin, as it is not majority-owned by the Group and is accounted for using the equity method. Isdin’s net revenues are not consolidated within our results; instead, its net profit or loss is included in our income statement based on our ownership percentage (50%) in the “Result from associates and joint ventures and impairment of financial assets” line. The pharmacy channel encompasses sales through both physical pharmacies and their e-commerce platforms.
Puig, with sales totaling 4.3 billion euros last year, aims to bolster its presence in Asia and capitalize on the anticipated 7% growth in the global beauty market this year. While the IPO will offer strategic opportunities for further expansion, the Puig family intends to maintain control by retaining a majority stake and the majority of voting rights. Despite geopolitical concerns, global equity capital markets have experienced a robust start to the year, although IPO markets have not kept pace, partly due to the potential impact of lower interest rates.
