Puig targets 1.25 billion euro equity raise in planned Spanish IPO

Spanish beauty and cosmetics giant Puig has announced its intention to make an initial public offering (IPO) of its class B shares on Spanish Stock Exchanges, with the goal of bringing in a total of 2.5 billion euros (2.7 billion dollars) in funding.

According to a regulatory filing for the parent company of Jean Paul Gaultier, Paco Rabanne and Charlotte Tilbury, it will first be making a primary offering of newly issued shares targeting an equity raise of approximately 1.3 million euros, followed by a larger secondary offering of shares by the company’s controlling shareholder, Puig S.L.

Following the offer, the Puig family will retain a majority stake and the “vast majority” of voting rights for the company.

In the filing, chairman and chief executive officer, Marc Puig, called the move a “decisive step in Puig’s 110-year history” which comes after a period of “strong profitable growth”.

Puig continued: “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.”

Puig family to retain majority stake

Speculation surrounding a possible IPO filing for Puig had begun circulating towards the beginning of last year, alongside reports that the Spanish firm had reorganised its corporate structure to bring all of its businesses under the umbrella of its public limited company, Puig Brands – formerly Jorba Perfumes.

While at the time the group had vehemently denied the possibility of an IPO, speculation only mounted as time went by, with media reporting later that the company had hired the services of Goldman Sachs and JP Morgan to oversee the debut, both of which have now been confirmed as joint global coordinators in the latest filing.

For 2023, Puig delivered net revenues of 4.3 million euros, a 19 percent increase on the year prior alongside double-digit growth across all segments and regions. The company also reported that it had consistently grown its adjusted EBITDA margin from 17.7 percent in 2021 to 20 percent in 2023, reflecting an adjusted EBITDA of 863 million euros for the period.