In a strategic move to leverage growing European investor interest and expand its market presence, Coty, the renowned cosmetics powerhouse, announced on Monday that it has submitted an application for a dual listing of its shares on the prestigious Paris Stock Exchange.
Coty, recognized as the parent company of iconic brands like CoverGirl, is embarking on a global offering of 33 million shares, intending to utilize the proceeds to lower its debt burden.
The listing process is being facilitated by a consortium of prominent financial institutions, including BNP Paribas, Crédit Agricole Corporate and Investment Bank, Citigroup, and Santander, all of which are jointly acting as book-running managers for this significant endeavor.
Founded in the fashion capital of the world, Paris, in 1904, Coty’s decision to explore a dual listing in the French capital underscores its ambition to fortify its presence in the European region, home to an array of luxury conglomerates such as LVMH and L’Oréal.
Coty’s recent success has been underscored by a notable increase in its annual core sales forecast. This growth has been fueled by higher pricing strategies and robust demand, particularly within the high-end segment of its product portfolio, which includes illustrious brands like Hugo Boss, Gucci, and Burberry.
The company has emerged as a beneficiary of the post-pandemic resurgence in the cosmetics and beauty product industry. Consumers are indulging in smaller luxuries, including fragrances and cosmetics, even in the face of persistent inflation, which has affected discretionary spending on various products globally.
In July, Coty’s CEO, Sue Nabi, hinted at the possibility of a Paris listing, citing the company’s belief in the presence of a substantial pool of investors in Europe who are eager to participate in Coty’s promising future.
Approximately 45 percent of Coty’s annual net revenue is derived from the Europe, Middle East, and Africa (EMEA) region, underlining the strategic significance of this dual listing endeavor.
Coty has enlisted the services of financial heavyweights BNP Paribas and Citigroup to spearhead this crucial listing initiative. The company is also contemplating the prospect of raising fresh capital as part of this listing, affirming its commitment to further expansion and innovation within the dynamic cosmetics industry.