Shares of Jean Paul Gaultier owner Puig rise in biggest IPO of the year

By Andrea Figueras

Shares of Jean Paul Gaultier owner Puig Brands jumped above their listing price on their trading debut in Spain after the world's biggest initial public offering so far this year.

The stock opened at EUR25.70 on Friday, 4.9% higher than its IPO price of EUR24.50, giving the company a market value of about 14.7 billion euros ($15.8 billion).

The Barcelona-based beauty company-which also owns the Carolina Herrera, Paco Rabanne and Nina Ricci fashion houses-is the latest in a string of European listings that have revived the continent's IPO market.

Puig's EUR3 billion offering-including both new shares and existing stock-topped those of Swiss skincare company Galderma Group in Zurich and buyout group CVC Capital Partners in Amsterdam as the biggest global IPO in 2024 to date, according to Dealogic data.

It was also the biggest IPO in Spain since the 2015 listing of airport operator Aena, according to data from stock-market operator BME.

Puig on Tuesday set the final price for its IPO at the top of a previously disclosed price range. The company raised EUR1.25 billion through the deal, while an entity controlled by the holding company of the Puig family sold a stake of EUR1.36 billion. The offering also includes an option to sell further shares valued at up to EUR390 million until June 1.

The Puig family will retain a majority stake in the company and the vast majority of the voting power after the IPO.

The company sells perfume, fashion, makeup and skincare products. Its fragrances and fashion segment accounts for the bulk of its revenue.

Puig made a couple of high-profile acquisitions in recent years to bulk up its portfolio and premium fragrance is a category that has been growing very strongly over the past several years, Morningstar analyst Dan Su said in an interview with Dow Jones Newswires.

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.

"At a time when consumers are becoming more selective about their spending and might trade down from some of the luxury purchases, it is probably less likely that they will consider cutting on fragrance, in the near future at least," the Morningstar analyst said.

For 2023, the family-owned company posted net revenue of EUR4.30 billion, and net profit of EUR465 million.

"Puig is not only strong in Europe, but the company is also gaining ground in North America and Asia Pacific, which are both very important markets in beauty," the analyst said.

Europe's recent listings have had mixed fortunes in their trading debuts.

Last week, CVC shares jumped on the company's first day of trading on Amsterdam's stock exchange. Galderma shares also rose when the company went public in Zurich in March, but shares in German cosmetic and perfume retailer Douglas fell on its return to the stock market years after it was taken private, and haven't yet returned to the IPO price.

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

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05-03-24 0615ET

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