Paco Rabanne owner Puig aims to raise more than €2.5bn by going public

Beauty group Puig is preparing to launch one of Spain’s largest IPOs in years, meaning its private shares will become available to the public.

According to a regulatory filing shared on Monday, the firm will initially sell €1.25 billion worth of stock, which will be followed by a larger secondary offering.

The filing did not specify the exact amount of shares that will be listed, but Puig is hoping to raise more than €2.5 billion.

By going public, the company is following in the footsteps of other key players in the beauty sector – notably LVMH, Kering, L’Oréal and Estée Lauder.

Marc Puig, Chairman and Chief Executive, said in a statement: “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.”

Founded in 1914, Puig has been family-led for three generations, and is now worth between €8 billion and €10 billion.

At the end of last year, Marc Puig told the FT that a potential IPO could help to invigorate the business: “Difficulties can arise, especially in the transition between generations – the search for leadership, a lack of understanding, a loss of passion … Having to be accountable to the market brings a discipline and rigour that ensures those issues don’t arise.”

Puig’s listing comes during a period of regrowth for the IPO market.

During the pandemic, the number of global listings slowed dramatically because of market uncertainty, but investor confidence is now being buoyed by the prospect of interest rate cuts.

According to PwC, the first three months of this year saw IPO earnings hit their highest level since the same period in 2021, with firms raising €4.8 billion.

This follows an earnings total of €1.2 billion raised through 10 IPOs in the first quarter of 2023.

Not all new listings, however, are performing well.

Whilst firms like Swiss skincare group Galderma and German manufacturer Renk have seen their stock value surge since going public, shares in German beauty retailer Douglas fell after an IPO listing last month.