Puig’s initial public offering (IPO) has garnered significant interest from investors, positioning it as the largest IPO in Europe this year and the most important in nine years for the market. Bloomberg reports that the company has successfully closed the placement at a price of 24.5 euros, valuing it at 13.9 billion euros. The results of the placement will be made public tomorrow after the market closes.
The Catalan luxury cosmetics firm has seen overwhelming demand, with the demand exceeding the available shares valued at around 3 billion euros. This IPO is the largest in Spain since Aena’s debut in 2015. Despite going public, the Puig family will still maintain a majority control of the company through a capital increase and the sale of existing shares.
The IPO is exclusively aimed at institutional investors and consists of a public subscription offer (OPS) of new class B shares worth 1.25 billion euros and a public sale offer (IPO) for additional income of 1.36 billion euros. This IPO surpasses that of Galderma Group and CVC Capital Partners, making it the largest in the European market for the year.
Regarding dividends, Puig has not yet approved a shareholder remuneration policy but plans to distribute dividends prudently starting in 2025. The estimated payout ratio will be 40% based on the company’s historical remuneration policy.
Who is Puig? Puig is a Catalan group with a rich history of 110 years specializing in perfumery, fashion, foot care treatments, and high-end makeup. It operates in 32 countries, employs over 11,000 people, and holds an 11% market share in selective perfumery. Puig is one of the top five sellers worldwide and owns 17 brands, including Rabanne, Charlotte Tilbury, and Carolina Herrera. Spain represents 7% of its revenues, with the US and England being its main markets.
Puig has undergone a transition in its business, diversifying its income streams. In just four years, the company has reduced the weight of perfumery sales from 100% to 72% while increasing the contribution of skincare, which now accounts for 10% of sales.
The company aims to achieve revenue of 4.3 billion euros by the end of 2023, with a net profit of 465 million euros. Its operating margin exceeded 16.1% in the previous year. Puig has 2,000 niche perfumery sales points worldwide, with 26% of sales generated through online channels.
Puig holds the fourth position in the selective perfumery segment and the third in dermocosmetics within the European parapharmacy field. Rabanne has already exceeded 1 billion euros in revenue, and Carolina Herrera and Charlotte Tilbury are expected to reach this milestone in the future. Advertising is Puig’s main expense, with approximately 1.34 billion euros dedicated to marketing campaigns for perfume sales in 2023.