Spanish beauty group Puig is set to make waves in the European IPO market with its upcoming initial public offering aiming for a valuation of nearly €14 billion. The strong demand for Puig’s shares is evident as any bids below €24.50 per share risk missing out on the offer, according to terms set by the company’s bankers.
Puig, known for luxury brands like Rabanne and Carolina Herrera, is looking to sell up to €3 billion worth of shares, with investors showing keen interest in the deal. The company, founded by the Puig family over a century ago, is expected to finalize its offer price on Tuesday before trading begins on Friday, led by JPMorgan and Goldman Sachs.
The timing of Puig’s IPO comes amidst a challenging period for the global luxury industry, with growth slowing down post-pandemic. However, Puig’s focus on beauty and fragrance products has proven to be resilient, with revenues increasing by 19% last year to €4.3 billion. This sector has seen steady demand even as economic pressures impact consumer spending.
While Puig’s IPO is generating excitement in the market, recent beauty IPOs have faced challenges, as seen with the underperformance of German perfume retailer Douglas in March. Despite this, Puig’s strong position in the luxury market and its diverse portfolio of brands have positioned it well for a successful market debut, signaling positive momentum in Europe’s IPO landscape.