Catalan cosmetics company Puig is preparing for the week in which it will participate in the largest European IPO of 2024. Initially, the price range is between 22 and 24.5 euros per share, which will allow the company to reach a market value approaching 14,000 million euros – between 12.7 billion and 13.9 billion. Specifically, the size of the offer reaches 3,000 million euros, as indicated by the company, which will set the final price on April 30 to start trading on May 3. Sources familiar with the process confirmed to the Europa Press news agency that the reason for the good prospects is the flood of “demand”, since, starting from this basis, they can enable the company to cover the volume of supply.
The process, aimed at institutional investors, consists of an IPO offering (Project Services Office) of new Class B shares, with fewer political rights, and an public offering for sale (IPO) of the shares in the hands of the Puig family. Thus, with the OPS division, the company expects to earn a total income of approx 1,250 million euros, at the same time as the company's majority shareholder, Puig, SL, controlled by Exea – the heritage company of the Puig family – is offering a number of shares in the secondary offer with the aim of achieving a total income of approximately 1,360 million euros. Taking into account the specified price range, the number of shares in the initial offering will be between 51,020,408 and 56,818,181 Class B securities, while the number of shares in the secondary offering will be between 55,510.204 and 61,818,181.
Puig retains a majority stake
However, despite the IPO, the Puig family remains the company's majority shareholder, as they will still retain political control of the company. In other words, despite the company's future stock market, the family will own 68% of the Class A shares, which have five political rights per title, and the remaining between 70.5% and 73.44%, depending on the “green shoe”, in the Class A shares. B, which are the shares that will be offered on the stock exchange.
From the cosmetics company's perspective, becoming a publicly traded company involves a “higher level of scrutiny” from investors, analysts, regulators and the market in general. “Ensuring that future generations of the Puig family adhere to the highest possible standards while steering the company in the right strategic direction.”: “This will allow the company to better compete in the international cosmetics market during the next phase of development. As a result of this offering, the company’s corporate and capital structures will be more closely aligned with the best family-owned companies in the global premium cosmetics industry, which have a strong core of connected shareholders.” In most cases they are founded by families, which encourages a long-term thinking approach.”
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