The Spanish family-owned cosmetics group Puig, which owns brands such as Charlotte Tilbury, Paco Rabanne and Carolina Herrera, is preparing an initial public offering, the biggest stock market listing in the beauty sector in years.
The Barcelona-based company announced the move to go public on Monday with plans to sell €1.25 billion (£1.07 billion) of new shares and an even larger amount of existing stock through the IPO, taking the total sum raised to more than €2.5 billion.
It would be the biggest listing in Spain since the airport operator AENA made its debut in 2015.
In the UK, Charlotte Tilbury has been run by chief executive Demetra Pinsent for more than a decade. A majority stake in the company was sold to Puig in 2020.
In an important step in its 110-year history, Puig intends to apply for admission of the shares to listing on the Barcelona, Madrid, Bilbao and Valencia stock exchanges.
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“Thanks to our strategy of building up a portfolio of owned brands, focusing on prestige products and expanding our leadership in niche fragrances, make-up and dermo-cosmetics, Puig has consistently delivered strong profitable growth,” Marc Puig, chairman and chief executive, said in a statement.
He 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.”
The Puig family will retain a majority stake and the vast majority of the voting rights of the company. The fashion and fragrance company controls 11 per cent of the global high-end fragrance market and sold €4.3 billion of products last year, up 19 per cent from 2022.
The efforts come after two years of muted stock market launches globally and in Spain, as economic and geopolitical uncertainty rocked markets. With interest rates poised to come down, bankers are hoping for a revival of new listings amid high stock prices.
In meetings with investors Puig will present its latest figures, the best in its history. According to the document sent to the market on Monday, the company closed 2023 with €4.3 billion revenue, 19 per cent more than the previous year. Its gross operating profit stood at €863 million and net profit at €463 million, up 16 per cent, with €1.1 billion in debt.
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The luxury sector is struggling with a decline in sales after a post-pandemic spending boom. Puig is seeking to boost growth in Asia and also in the skincare business. It also leaves the door open to further acquisitions, following the purchase of the Barbara Sturm brand in January.
