After months of speculation, family-owned Puig confirmed plans to raise €2 billion and €3 billion ($2.17 billion-$3.2 billion) listing on the Spanish Stock Exchanges. The initial public offering will be Spain's largest in almost a decade. While the timing of the listing has not been confirmed, Bloomberg reported that it could happen as soon as next week.
“Today’s announcement is a decisive step in Puig’s 110-year history,” said Marc Puig, Chairman and Chief Executive Officer of Puig, in a statement. “Thanks to our strategy of building up a portfolio of owned brands, focusing on prestige products, and expanding our leadership in niche fragrances, makeup and dermocosmetics, Puig has consistently delivered strong profitable growth."
“Our unique and creative DNA has allowed us to attract leading founders and brands, establishing longterm partnerships and helping them grow while preserving their legacy,” he continued. “We strongly believe that building premium brands requires long-term thinking and having a family behind a company fosters this long-term approach, because they tend to care in equal measure about the time horizon of the next generation and the next quarter."
Beauty IPOs have been a mixed bag so far this year. German beauty retailer Douglas and Galderma listed within days of each other with vastly different results. Galderma has seen its stock surge more than 20% since listing in Zurich last month, while Douglas' stockhas fallen about 22% since it went public.
Barcelona-based Puig operates across 32 countries with 17 brands, Rabanne, Charlotte Tilbury, and Carolina Herrera being the top revenue-generating brands. In 2023, Puig reported net revenues of €4.3 billion ($4.6 billion), up 19%, while net profit rose to €465 million ($503 million), up 16%.
Puig redefined its strategy over the past few years, which included focusing on prestige by consolidating its businesses in the higher-margin, premium beauty sector and prioritizing owned brands which drove 95% of revenue last year.
Fragrance has been the most significant revenue driver for the group, but skincare witnessed the highest growth in 2023, with revenues up 31 percent to €431 million ($466 million). The company has diversified the portfolio through M&A, acquiring Charlotte Tilbury in 2020 and Dr. Barbara Sturm in January.
Ninety-five percent of company net revenues last year, which reached 4.304 billion euros, came from its fully or majority-owned brands.
Puig has also built a portfolio of niche fragrance brands, which are part of the fastest-growing category in the hot perfume market today. Those include Penhaligon’s, L’Artisan Parfumeur, Dries Van Noten, and Byredo.
Puig said a public listing would align its corporate structure with other businesses in the premium beauty sector. "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," Marc Puig said in a statement.
The term sheet shows that the Puig family will retain a majority stake and the vast majority of the company's voting rights. The group said it will use the proceeds from the IPO to refinance recent acquisitions of additional ownership in the prestige fragrance label Byredo and Charlotte Tilbury brands. It will also help finance future strategic investments.
