Coty filed a draft prospectus for an initial public offering of its Brazilian unit Coty Brasil Comercio SA on the São Paulo exchange to help deleverage and expand its business.

Bloomberg reported the listing could raise about 1 billion reais ($190 million). In a filing with the Brazilian securities regulator, the company said its Brazilian unit also plans to raise fresh proceeds to expand e-commerce and develop new products.

In a call with analysts, Coty Chief Financial Officer Laurent Mercier said, "It's definitely a decision with the goal of supporting the growth of the Brazil business and Coty's personal-care brands," he said, adding that this will also help advance Coty's deleveraging agenda.

The Brazilian IPO is the latest in Coty's divestment strategy. Last year the company announced a strategic partnership with global investment firm KKR to sell a majority stake in its professional beauty and retail hair businesses in a deal valued at $4.3 billion or 12.3x 2019 EBITDA.

The company has hired Bank of America, Itau BBA, and Santander Brasil to manage the offering, according to the preliminary prospectus.