Spanish family-owned fashion and beauty house Puig today announced a price of €24.50 for its class B shares when trading begins on Friday 3 May. The group announced an Initial Public Offering (IPO) on 8 April, with shares to be listed on the Barcelona, Madrid, Bilbao and Valencia stock exchanges.
The price per share implies a capitalisation of €13.92 billion – signalling strong demand from the market.
This is at the top of a previously announced range from €22.00-24.50 per share, with the company aiming to sell up to €3 billion worth of shares (or 122,448,979).
Following the IPO, the Puig family will retain a majority stake and most of the company’s voting rights.
Chairman and CEO Marc Puig said: “Today marks a decisive new chapter in the 110-year-old history of Puig. The pricing of our IPO reflects very strong investor demand and is a testament to the hard work and unwavering dedication of all the Puig teams who demonstrate creativity and passion for innovation on a daily basis. We are grateful for investor support of our strategy to grow and succeed in the global premium beauty market thanks to our unique portfolio of brands.”
Focusing on the premium beauty market
Puig was founded in 1914 and is a leading player in the fragrance and fashion, makeup and skincare segments. Headquartered in Barcelona, it operates across 32 countries with 17 Love Brands, the largest of which in terms of revenue are Rabanne, Charlotte Tilbury and Carolina Herrera.
The company has streamlined and focused the business on the fast-growing and higher-margin premium beauty business, which comprises exclusive products with high price positioning and quality offering.
About 95% of its 2023 revenue came from ‘Love Brands’, which are fully owned or majority-owned by Puig. A selective acquisition strategy has allowed Puig to grow these brands, avoiding license renewal risk and fostering long-term collaboration with the founders.
The company has also built a portfolio of niche fragrances including Penhaligon’s, L’Artisan Parfumeur, Dries Van Noten and more recently Byredo.
Additionally, Puig has diversified into makeup through strategic acquisitions, including the purchase of Charlotte Tilbury, and through launches such as Christian Louboutin Beauté and Rabanne’s makeup line.
In skincare, Puig acquired Dr. Barbara Sturm earlier this year. This reinforces its position in the premium skincare segment with a portfolio that also includes Uriage, Apivita and wellness brands Kama Ayurveda and Loto del Sur, as well as leading Charlotte Tilbury products such as Magic Cream.
The skincare portfolio is complemented by the company’s 50% stake in Isdin, which Puig co-founded in 1975.
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.
In addition to the proposed Offering – as part of the consideration to be paid by the company for the acquisition of respective additional ownership interests in Byredo and Charlotte Tilbury from some minority shareholders – Puig will issue an amount of class B shares for their subscription by such minority shareholders. ✈
