Puig, the Spanish cosmetics and fashion conglomerate, is set to make its debut on the stock market in 2024, and early estimates indicate that it could have a valuation surpassing €10 billion. This would make it one of the most noteworthy corporate operations in Spain next year.
To ensure a successful IPO, Puig has enlisted the help of various advisors. STJ, in partnership with AZ Capital, will handle the financial aspects of the process, while JP Morgan and Goldman Sachs will coordinate the operation. Additionally, Linklaters and Cuatrecasas will be responsible for legal matters. The company has already begun discussions with potential investors to assess the demand for this operation.
Key to the success of the IPO is the valuation that Puig can achieve. In 2022, the company’s EBITDA reached €638 million. Assuming a sector-average valuation for comparable companies, this figure would rise to €11.484 billion. After deducting the €961 million debt from 2021, the estimated value stands at €10.5 billion. However, the advisory team believes that this figure could potentially increase to €12 billion, taking into consideration Puig’s projected performance in 2023 and its appeal to investors. Puig aims to position itself alongside industry giants such as LVMH, Kering, Hermès, and Estée Lauder.
Currently, the majority of Puig’s shares, 89% to be exact, are owned by Exea, the Puig family’s family office. Puig Gest holds a 10% stake, and the remaining 1% is owned by minority partners. The National Securities Market Commission (CNMV) requires a minimum market sale of 25%, meaning that an operation capital ranging between €2.5 and €3 billion will be necessary.
Puig finished 2022 with revenues of €3.6 billion and a profit of €400 million. The company has strategically expanded its portfolio through acquisitions over the past years, including the purchases of Charlotte Tilbury in 2020, Byredo in 2021, and Kama Ayurveda in 2022.
All in all, Puig’s IPO in 2024 is anticipated to be a significant event in the Spanish corporate landscape, with early estimates suggesting a valuation exceeding €10 billion. As Puig engages with potential investors and continues its preparations, the market will be closely observing its performance and positioning among industry peers.
Useful links:
– Puig Official Website
– National Securities Market Commission (CNMV) Website
