Jean Paul Gaultier owner Puig plans $3.25 bln IPO in Spain

By Andrea Figueras and Ben Dummett

Jean Paul Gaultier owner Puig Brands plans to list the beauty group in Spain through a 3 billion-euro stock sale ($3.25 billion) that would be the biggest initial public offering globally so far this year.

The Barcelona-based company-which also owns the Carolina Herrera, Paco Rabanne, and Nina Ricci fashion houses-said Monday that it intends to apply for a listing in Madrid and other Spanish stock exchanges.

The plan is the latest sign of a revival in European IPO activity after a prolonged lull. Last month, Swiss skincare company Galderma Group (CH:GALD) made its trading debut in Zurich, while German cosmetic and perfume retailer Douglas (XE:DOU) also returned to the stock market years after it was taken private.

Puig's offering would top the $2.56 billion by Galderma as the biggest this year, according to Dealogic data. It would be the biggest in Spain since 2015, when airport operator Aena (ES:AENA) completed an IPO of around EUR3.87 billion, according to data from stock-market operator BME.

Galderma stock has surged more than 20% since listing in Zurich last month. But shares in German beauty retailer Douglas have fallen about 22% since it went public around the same time.

Puig said it would raise about EUR1.25 billion directly through a sale of new shares. The offering will also include a larger offering of shares held by its controlling shareholder, which is in turn controlled by the holding company of the Puig family.

Existing shareholders plan to sale shares valued at EUR1.75 billion, according to people familiar with the matter.

The Puig family will retain a majority stake in the company and the bulk of the voting rights after its IPO, the company said.

The company intends to use proceeds from its IPO to refinance the acquisitions of additional stakes in Sweden's Byredo and U.K.'s Charlotte Tilbury and to fund future strategic investments, it said.

Puig Chief Executive Marc Puig called the move a decisive step in the company's 110-year history and said the balance of being a family-owned company that is also subject to market accountability will allow it to better compete in the international beauty market.

The company didn't say when it expects shares to start trading and declined to comment on its potential valuation.

Puig's confirmation that it will pursue a listing comes after months of speculation.

For 2023, the company posted net revenue of EUR4.30 billion, up 19% from the prior year, and a 16% rise in net profit to EUR465 million. Earnings before interest, taxes, depreciation and amortization rose 33% to EUR849 million.

Puig sells perfume, fashion, makeup and skincare products. Its fragrances and fashion segment accounts for the bulk of its revenue, and Europe, the Middle East and Africa is its most important market by sales.

Write to Andrea Figueras at andrea.figueras@wsj.com

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04-08-24 0818ET

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