Spanish beauty group Puig receives lukewarm reception for Europe's largest IPO this year

The shares of Spanish beauty group Puig closed flat at their offer price of €24.50 in their market debut on Friday, providing a lukewarm reception for Europe's largest initial public offering (IPO) this year.

Transaction snapshot

  • Deal value: €2.6bn raised by issuing 106.5mn shares, with potential to increase to €3bn if overallotment option is exercised
  • Deal multiples: N/A
  • Deal type: Initial Public Offering (IPO)
  • Investors: N/A

Puig, the owner of brands such as Rabanne and Carolina Herrera, priced its oversubscribed IPO at the top of its targeted valuation range earlier this week, giving it a market capitalisation of almost €14 billion. Despite the initial rise in share price at the start of trading, the stock soon pared gains before falling back to the issue price.

Factors such as the drop in Estee Lauder's share price and the IPO being priced at the top end may have weighed on Puig's initial trading performance, according to a source familiar with the transaction. However, the expectation that Puig may join stock indices like Spain's IBEX 35 could drive further demand for its shares, as noted by Xavier Brun, a portfolio manager at Trea Asset Management who participated in the IPO.

The IPO of family-owned Puig is the latest in a string of European listings this year, driven by higher stock prices and improving market sentiment. However, the performance of new stocks has been mixed, with some companies soaring on their market debuts while others have traded below their issue price.

Puig and its controlling family stand to raise up to €3 billion through the IPO, which offered class B shares to external investors, conferring fewer voting rights. The family intends to remain involved in the project, as stated by CEO and chairman Marc Puig, who emphasised the importance of a family business looking at both short-term results and long-term success.

The Barcelona-based company, which has made several acquisitions in the past decade, saw net revenues grow 10.1% in the first quarter of 2024 compared to the previous year, outperforming the overall growth of the wider premium beauty market. While EMEA markets accounted for 54% of net sales in 2023, Puig plans to expand in Asia.

📌 if you're looking to learn more about how to go about your own exit, or would like to learn more about the M&A landscape in Australia, click here to book in a free confidential consultation.

Back to blog