Puig announces intention to go public, aiming to raise over €2.5 billion

The century-old cosmetics firm Puig announced on Monday its intention to go public, seeking to raise over €2.5 billion through a public offering of shares (IPO). This will include the issuance of new shares targeted at qualified investors and a larger offering of existing shares.

Puig plans to apply for the listing of its shares on the Barcelona, Madrid, Bilbao, and Valencia Stock Exchanges, with trading on the continuous market.

The IPO will consist of new share issuances aimed at raising approximately €1.25 billion, along with an offering of existing shares from the majority shareholder of the company, Puig, controlled by Exea, the Puig family’s investment vehicle.

Following the offering, the Puig family will retain a majority stake and the vast majority of voting rights in the company.

Goldman Sachs and JP Morgan SE will serve as joint global coordinators and joint bookrunners for the offering, with Banco Santander, BofA Securities Europe, BNP Paribas, and CaixaBank acting as joint bookrunners.

BBVA and Banco de Sabadell will act as co-lead managers and, along with the aforementioned institutions, form part of the group Puig has termed “managers” for the offering.

Puig will grant Goldman Sachs, acting as stabilization agent, an option to purchase, on behalf of the managers, up to 15% of the offering size in over-allotment shares.

The net proceeds from the fund-raising will be used for general corporate purposes, including the refinancing of additional stakes in Byredo and Charlotte Tilbury, as well as funding future strategic investments and capital expenditures.

Puig’s share capital consists of Class A and Class B shares, with each Class A share carrying five votes and each Class B share carrying one vote, and both classes having the same economic rights.

In addition to the proposed offering, Puig will issue a certain number of Class B shares to certain minority shareholders as part of the consideration for acquiring their additional stakes in Byredo and Charlotte Tilbury.

These newly issued class B shares will be in addition to, but not part of, the offering of new shares issued in the IPO and will be subscribed to at the final offering price.

Puig and Exea, the Puig family’s investment vehicle, will enter into lock-up agreements with the managers for a period from the signing of the underwriting agreement to 180 calendar days after the shares’ listing.

Directors, senior executives, and certain employees of the company will also agree to certain disposal restrictions for a period from the signing of the underwriting agreement to 365 calendar days after the listing, but only with respect to a specified number of Class B shares.

Additionally, new minority shareholders will be subject to disposal restrictions for a period of 180 calendar days with respect to the new Class B shares they receive.

The approval process for the offer prospectus by the National Securities Market Commission (CNMV) is underway and will include all relevant details and the expected timetable.

Puig has reported that Linklaters is serving as its legal advisor for the offering, while Cuatrecasas, Gonçalves Pereira, and Davis Polk & Wardwell are the legal advisors for the managers.

Goldman Sachs, prior to assuming the role of global coordinator for the offering, acted as Puig’s exclusive financial advisor for exploring potential alternatives to bring in new investors, including a public offering of its shares.

Marc Puig: A “decisive step” in the company’s history

“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. 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,” highlighted Marc Puig, CEO of the company.

Founded in 1914, Puig operates in the fragrance, fashion, makeup, and skincare segments. Headquartered in Barcelona, it boasts a presence in 32 countries with 17 brands, including revenue-generating Rabanne, Charlotte Tilbury, and Carolina Herrera.

The company reported net revenues of €4.304 billion in 2023, a 19% increase over 2022, with double-digit growth in all segments and regions, surpassing its own targets.