Spain's fashion and beauty group Puig poised for IPO

Puig Group owns the Paco Rabanne, Nina Ricci, Charlotte Tilbury and Carolina Herrera labels and besides holds a bulk involvement successful Jean Paul Gaultier. Photo: FRANCOIS GUILLOT / AFP/File
Source: AFP

The iconic Nina Ricci, Paco Rabanne and Jean-Paul Gaultier labels marque their marketplace debut Friday arsenic Spanish fashion and quality radical Puig begins trading connected the Madrid banal exchange.

For the family-owned Puig Group, which has expanded rapidly into luxury goods, going nationalist is simply a large measurement which volition let it to vie with the giants of the assemblage specified arsenic Estee Lauder, Hermes, Kering and LVMH.

The determination "is a decisive measurement successful Puig's 110-year history," president and CEO Marc Puig said past month, emphasising the firm's "long-term approach".

Founded successful Barcelona successful 1914 by businessman Antonio Puig Castello, the radical has grown implicit the years to go a heavyweight successful the cosmetics, fragrance and manner industries, bolstering its stance successful caller years with a drawstring of prestigious acquisitions.

Among its brands are Paco Rabanne, Nina Ricci, Charlotte Tilbury, Carolina Herrera and Dries Van Noten. It besides holds a bulk involvement successful the Jean Paul Gaultier statement and has licensing agreements with Prada, Christian Louboutin and Comme des Garçons.

A household steadfast

The Barcelona-based group, which specialises successful perfumes and cosmetics, enters the marketplace connected Friday with an opening guidance terms of 24.50 euros (about $26) per share.

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Analysts said it was Spain's biggest IPO this twelvemonth and 1 of the largest successful Europe.

The terms gives the radical an estimated marketplace capitalisation of astir 14 cardinal euros, which volition let it to participate Madrid's Ibex 35 exchange, which groups Spain's 35 largest companies.

The flotation volition instrumentality spot successful 2 stages, the archetypal of which would question to rise an archetypal 1.25 cardinal euros done recently issued shares.

It would past marque a "larger secondary offering" of existing shares held by its holding institution Exea to rise astir 1.36 cardinal euros.

That could past beryllium complemented with the merchantability of shares reserved for circumstantial investors for different 390 cardinal euros, which would let the radical to rise astir 3.0 cardinal euros.

Despite the move, the Puig household said it would clasp a controlling involvement successful the institution with 71.7 percent of the shares, on with "the immense bulk of voting rights" -- 92.5 percent -- wrong the committee of directors.

'Greater fiscal clout'

The thought of an IPO had archetypal been raised by Puig himself successful an interrogation with the Financial Times successful October 2023, successful which helium said being accountable to the marketplace would bring "a discipline" that would caput disconnected immoderate issues erstwhile passing the baton from 1 procreation to the next.

"Sometimes household businesses can suffer their presumption successful the market. They tin commencement to dice dilatory and cipher wrong the institution is alert of it," helium told the paper. "If you’re accountable (to investors), those things tin beryllium noticed."

According to Javier Cabrera, an expert astatine XTB, the IPO would let the radical to physique "greater fiscal clout" by taking vantage of "the affirmative banal marketplace dynamics" successful the luxury goods and manner sector.

Luxury goods are enjoying a buoyant infinitesimal with assemblage heavyweights posting grounds income successful 2023, contempt a slowdown pursuing 2 years of double-digit growth.

Last year, Puig posted income of 4.3 cardinal euros, a 19 percent summation connected 2022, logging nett profits of 465 cardinal euros, up 16 percent year-on-year.

And that maturation could stitchery gait acknowledgment to Puig's strategy of acquisitions, which successful caller years has led to "a precocious level of growth" and "a bully diversification of revenues, some geographically and successful presumption of concern lines", Cabrera said.

He besides pointed to the group's beardown showing successful China, a large user of luxury goods.

Source: AFP