((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
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Sale of shares between 22 euros and 24.5 euros each
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The objective is to raise up to 3 billion euros
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The Puig family will retain a majority stake
(Added fund manager’s comment to paragraphs 7 and 8)
Fragrance and fashion company Puig is seeking a valuation of 13.9 billion euros ($14.8 billion) in Spain’s largest initial public offering (IPO) in almost ‘a decade.
The Barcelona-based company said on Thursday it aimed to raise up to 3 billion euros by selling new and existing shares at a price between 22 euros and 24.5 euros each.
The maker of Rabanne and Carolina Herrera perfumes is offering around 1.25 billion euros of new shares and 1.36 billion euros of existing shares in the IPO, according to a document sent to the Spanish stock market regulatory authority.
Goldman Sachs, as responsible for stabilizing the IPO, will also have the opportunity to purchase up to 390 million euros.
The shares will be class B, meaning they confer fewer voting rights than class A shares, but the same economic rights.
The listing on the Madrid stock exchange is expected to take place on May 3 and would be the largest in Spain since airport operator AENA debuted in February 2015. The booking period which began on Friday is expected to end on April 30.
“Puig’s shares will be a good deal for the Spanish stock market which until now lacked a niche for luxury companies,” said Jose Ramon Iturraiga, portfolio manager at Abante Asesores, a L’Oréal shareholder , Puig’s other major company.
“But the range that they offer is somewhat high, trying to take advantage of the appetite that there is in the market for companies in this sector,” added Mr. Iturraiga.
Puig is going public after buying brands such as luxury brand Byredo and makeup Charlotte Tilbury in recent years to better compete with rivals L’Oreal and Estee Lauder, whose market values stand at $237 billion respectively. dollars and 49 billion dollars.
Puig, which had sales of 4.3 billion euros last year, plans to expand in Asia and gain share in a global beauty market expected to grow 7% this year.
The IPO will provide more options for the next phase of development, but the Puig family will retain a majority stake and the largest share of voting rights.
IPO markets continued to lag after a strong start to the year for global capital markets, as the prospect of lower interest rates was offset by geopolitical concerns.
Spanish fashion retailer Tendam told Reuters this week that it plans an IPO by next February.
(1 dollar = 0.9374 euros)