Puig shares rise more than 5% in Europe’s biggest IPO of the year

Puig shares debuted at an opening price of €25.54 (+4.24%) in Europe’s biggest IPO this year. The rise increased and exceeded 6% a few minutes later before deflating.

Puig made its debut on the Spanish stock market at noon this Friday, marking a first price of 25.54 euros. an increase of 4.24%. The price rose again a few minutes later until it reached an intraday high of €26.12 (+6.61%), but it later eased, with shares up 1.31% at €24.82 after 12:30 p.m.

Cosmetics company set its debut price on the stock market at 24.5 euros per share.the highest of the range set out in the prospectus, which represented a market capitalization of €13,920 million.

According to Bankinter analysts, this starting price represents -15.6% discount compared to the sector average (Loreal, Estee Lauder, Shiseido, Kochi, Interperfums) in terms of EV/EBITDA 2023 and -34.4% compared to the sector leader, Reality

.

“We believe a reasonable discount could be -20% over L’Oreal or a +3% premium over the sector. which would mean trading in the range of 30 or 31 euros per share.“, says the Bankinter expert Elena Fernandez-Trapiella. It will mean the potential is between 22.4% and 26.5% using the starting price as a guide.

Marc Puig, President of Puig, was responsible for ringing the traditional bell at the Barcelona Stock Exchange. The executive assessed that “a promising future awaits us,” emphasizing that the company has found a “massive response” from investors.

Making his debut on the stock market, Puig outperformed IPO companies. Galderma Group AG and from CVC Capital Partners Pl, which was so far the largest in Europe. European companies have raised about $8.6 billion this year, more than double what they raised in the same period in 2023, according to Bloomberg.

Follow Puig Brands B prices in real time.

Puig, founded in 1914, owns brands such as Rabanne, Carolina Herrera And Jean Paul Gaultier. Over the years the company has expanded into skincare and make-up, most recently with the acquisition of Charlotte Tilbury.

Sales grew by +29% in the period 2021/2023 (CAGR) and net earnings per share (BNA) by +45%. Gross margin was 74.7% and M. EBIT was 16.1% in 2023, compared to sector averages of 69.7% and 10.7%, respectively.

The Puig family retains control

In the IPO, the company offered €1,250 million worth of new shares through an offer for public subscription (OPS), as well as existing shares worth €1,360 million through an initial public offer for sale (IPO). The new shares are classified as Class B, which carries fewer votes than Class A but the same economic rights.

After this operation The Puig family retains control of the company as the majority shareholder.. The outstanding Class A shares held by the family will represent 68.0% of the total capital but over 90% of the voting rights, while the Class B shares will represent 32% of the total shares and give 8.6%. % of total votes.

With the OPS tranche, the firm has received gross proceeds of approximately €1.25 billion in new partnership funds, which it will use for general corporate purposes, including refinancing the acquisition of additional stakes in Byredo and Charlotte Tilbury, and supporting portfolio and brand growth strategies companies.

Among the investors present at the operation were: CriteriaCaixa acquired Class B shares representing 3.05% of the share capital.. To this end, the holding company that manages the business assets of the La Caixa Foundation has invested 425 million euros in the operation, which is part of its investment policy that “selects leading companies in highly attractive sectors with the ability to grow and create value.”

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