Cosmetics group Puig, owner of brands such as Carolina Herrera, Rabanne and Charlotte Tilbury, announced on Monday plans to raise more than 2.5 billion euros ($2.71 billion) in Spain's largest initial public offering in almost a decade.
The family-owned company aims to sell 1.25 billion euros of new shares and an even larger amount of existing stock through the IPO, according to a deal term sheet seen by Reuters.
It would be the biggest listing in Spain since airport operator AENA (AENA.MC) made its debut in February 2015.
Puig said a public listing would align its corporate structure with that of other businesses in the premium beauty sector.
"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," Chairman and Chief Executive Marc Puig said in a statement.
The Puig family will retain a majority stake and the vast majority of the voting rights of the company, the term sheet showed.
The fashion and fragrance company controls 11% of the global high-end fragrance market. With recent acquisitions its exclusive skincare and makeup brands sold 4.3 billion euros of products last year, up 19% from 2022.
The company said it will use the proceeds from the IPO to refinance recent acquisitions of additional ownership in the prestige fragrance label Byredo and Charlotte Tilbury brands. It will also help finance future strategic investments, according to the document.
The Barcelona-based company said it expects to expand its presence in Asia Pacific and in the skincare wellness categories.
With interest rates poised to come down, bankers are now hoping for a listings revival amid high stock prices.
A string of European IPOs this year has produced mixed results. Companies such as Swiss skincare group Galderma (GALD.S) and defence contractor Renk (R3NK.DE) soared after their market debuts but perfume retailer Douglas (DOU1.DE) continues to trade below its IPO price.
Spanish travel technology firm Hotelbeds is considering going public as soon as the first half of this year if market conditions allow, sources have told Reuters.
However, Spanish privately owned logistics group Berge last week dropped plans to list shares in its automotive unit Astara, saying market conditions are not the most appropriate.
The most recent market debut on the Spanish stock market was from Spanish renewable company Opdenergy (OPDE.MC) in July of 2022.
($1 = 0.9238 euros)
