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Spanish beauty group, Puig, which owns brands including Charlotte Tilbury, has announced its intention to raise more than €2.5bn (£2.1bn) through an initial public offering of its class B shares to qualified investors.
The 110-year old company is looking to apply for admission of the shares to listing on the Barcelona, Madrid, Bilbao and Valencia Stock Exchanges and trading through the Automated Quotation System.
The offering will consist of a primary offering tranche of newly issued shares by the company, targeting an equity raise of approximately €1.25bn (£1.07bn), and a larger secondary offering of shares by the group’s controlling shareholder, Puig, controlled by Exea, the holding company of the Puig Family.
Following the offering, the Puig family will retain a majority stake and the vast majority of the voting rights of the company.
Additionally, Puig will grant Goldman Sachs Bank Europe SE, as stabilisation manager, an option to purchase, on behalf of the Managers (as defined below), over-allotment shares of up to 15% of the size of the offering.
The company will use the net proceeds from the equity raise for general corporate purposes such as refinancing the acquisitions of additional ownership interest in Byredo and Charlotte Tilbury and financing any future strategic investments and capital expenditures.
Marc Puig, chairman and CEO of Puig, said: “Today’s announcement is a decisive step in Puig’s 110- year history. Thanks to our strategy of building up a portfolio of owned brands, focusing on prestige products and expanding our leadership in niche fragrances, makeup and dermo-cosmetics, Puig has consistently delivered strong profitable growth. Our unique and creative DNA has allowed us to attract leading founders and brands, establishing long-term partnerships and helping them grow while preserving their legacy.
“We strongly believe that building premium brands requires long-term thinking and having a family behind a company fosters this long-term approach, because they tend to care in equal measure about the time horizon of the next generation and the next quarter. At the same time, it is important for any family business to have the right checks and balances in place, particularly during generational transitions.”
Puig added: “We believe that the balance of being a family-owned company that is also subject to market accountability will allow us to better compete in the international beauty market during the next phase of the Company’s development. Additionally, we believe that becoming a publicly listed company will align our corporate structure with those of best-in-class, family-owned companies in the Premium Beauty sector globally, help us to attract and retain talent, and support the growth strategy of our brands and portfolio.”
