The multinational Puig will debut on the Stock Exchange this Friday at a price of 24.5 euros per share, which implies a market capitalization of 13,920 million euros and the largest European stock market debut of the year. The Barcelona-based company will be listed on the stock exchanges of Barcelona, Madrid, Bilbao, and Valencia. At noon this Friday, the traditional bell-ringing ceremony will take place in the Catalan capital. The fragrance and cosmetics company expects that the family will retain 71.7% of the company's economic rights and 92.5% of the voting rights.
The operation, aimed at institutional investors, consists of a public offering for subscription of 51 million new class B shares, with fewer rights, and a public offering for sale of shares from the Puig family. In the first tranche, the firm seeks to raise approximately 1,250 million euros, which will be used for corporate objectives such as, for example, refinancing the acquisitions of the Byredo or Charlotte Tilbury brands and continuing with the portfolio growth strategy.
In addition to the new shares, 55.5 million secondary shares, which until now belonged to the majority shareholder, controlled by Exea, the Puig family's holding company, have been allocated to investors for a total of 1,360 million euros. The company details that the over-allotment option of up to 15% of the offering ---390 million--- may be exercised by Goldman Sachs until June 1.
The Spanish Stock Exchange had not seen a debut of this magnitude since Aena's jump in 2015. The company will go public as a candidate to enter the Ibex 35.
110 years of history
With 110 years of history and headquartered in Plaza Europa in L'Hospitalet, Puig is a global company in the beauty sector with a portfolio of fashion and beauty brands, such as Paco Rabanne, Carolina Herrera, or Jean Paul Gaultier. In 2023, it recorded a record net sales figure of 4,304 million euros, representing a 19% increase compared to 2022. Net profit rose to 465 million euros (+16%). The company controls 17 brands and operates in 32 countries. Last year, 95% of revenues came from brands that were totally or mostly under Puig's control, reports ACN.
Diversification
In recent years, the company has focused on premium products, which grow faster and have higher margins, as well as on creating a portfolio of niche fragrances with limited distribution and diversifying the business towards the makeup sector. In this area, strategic acquisitions, such as that of Charlotte Tilbury, and the launches of Christian Louboutin beauty lines or Rabanne makeup stand out.
In the skincare sector, Puig bought Dr. Barbara Sturm at the beginning of the year, strengthening a portfolio that includes Uriage and Apivita. The group also controls 50% of Isdin, co-founded by Puig in 1975. Last year, the company grew in all segments – fragrances, fashion, and skincare – by double digits. The makeup segment saw a 23% increase in revenue and accounted for 18% of total turnover; while skincare revenue increased by 31%, becoming 10% of revenue.
At the time of announcing the decision, executive chairman Marc Puig defended the "decisive step" represented by the IPO, explaining that "it is important for every family business to have adequate checks and balances, especially during generational transitions." "We believe that the balance of being a family company that is also subject to market accountability will allow us to compete better (...). Furthermore, we believe that becoming a listed company will align our corporate structure with that of the best family companies in the premium beauty sector worldwide," he added.
New brand image
The company has presented a new logo the day before its stock market debut, which seeks to "pay homage to both Puig's legacy and its bright future, giving prominence to creativity while reflecting Puig's own culture and values." Created in collaboration with the French art and design agency M/M (Paris), the evolution is based on the original work of Swiss designer Yves Zimmerman for the company.
The new identity will be seen during the stock market debut ceremony this Friday, led by the chairman, Marc Puig, and will be progressively introduced.
CriteriaCaixa investment
After announcing the IPO, the group confirmed "significant demand" from institutional investors when the order book opened, which closed on April 30. Specifically, CriteriaCaixa announced this Tuesday that it would enter the capital of the cosmetics firm by taking advantage of the IPO. In particular, the holding company that manages the business assets of the "la Caixa" Banking Foundation has committed an investment of 425 million euros to buy 3.05% of the shares of Puig Brands, the company making its debut on the stock market.