Puig Targets €2.5 Billion IPO

Puig Targets €2.5 Billion IPO

After Months Of Speculation, The Family-Owned Conglomerate Confirms Plans to Retain Majority Control While Listing Shares on Spanish Stock Exchange

Puig has announced plans to embark on an initial public offering of its class B shares on Spanish Stock Exchanges. The company aims to raise a substantial 2.5 billion euros (approximately 2.7 billion dollars) in funding through this strategic move.

This announcement follows a period of impressive growth for the Barcelona-based conglomerate. In 2023, Puig reported a noteworthy 19 percent increase in net revenues, reaching a total of 4.3 billion euros. Additionally, the company witnessed robust growth across all its segments and regions, achieving an adjusted EBITDA margin of 20 percent.

Marc Puig | Chairman and CEO of Puig

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.” 

“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 continued.

Puig’s IPO strategy encompasses a dual-phase approach. Initially, the company plans to conduct a primary offering of newly issued shares, with the aim of raising approximately 1.3 million euros. Subsequently, a larger secondary offering of shares will be facilitated by Puig’s controlling shareholder, Puig S.L. Despite transitioning to a publicly listed entity, the Puig family is set to retain a majority stake in the company, along with the lion’s share of voting rights.

Puig owns Paco Rabanne, Jean Paul Gaultier, Carolina Herrera, and a majority share in Dries Van Noten, as well as several other fashion and beauty brands and beauty and fragrance licenses.

The decision to pursue an IPO aligns with prevailing market dynamics, characterized by buoyant equity markets and a resurgence of interest in IPOs worldwide. Recent successful offerings by companies such as Galderma Group AG and Douglas AG in Europe underscore the attractiveness of this financing avenue. For Puig, this move represents the culmination of a strategic repositioning effort, marked by a focus on prestige, niche fragrances, makeup, and skincare.