Natura shares skyrocket with possible Aesop IPO and US listing

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Natura&Co’s shares soared in the first hours of trading on the Brazilian Stock Exchange this Tuesday (18).

The day before, the company informed the market in a press release that its board of directors authorized studies for a possible IPO (an initial offering of shares) of Aesop, an Australian cosmetics brand acquired by the Brazilian company almost a decade ago.

According to the public document sent to the market, the IPO may be preceded by a spin-off, with a listing in the United States.

Around 12:00 pm on Tuesday, Natura shares (NTCO3) rose 16.5%, to R$ 15.13. At the maximum this morning, the shares soared more than 18% and reached the price of R$ 15.40.

“The IPO has been evaluated in recent months as an alternative to finance the accelerated growth of Aesop, and the management of Natura&Co has been taking the necessary steps to seek such an alternative”, said the conglomerate in a material fact.

Natura stated in the statement that a possible spin-off could unlock more value for Aesop. In any case, the business will continue under the leadership of current president Michael O’Keeffe through a holding company to be listed in the United States.

The announcement comes about a month after a surge in Natura’s shares on the stock exchange, amid rumors involving a restructuring of units of the cosmetics conglomerate, Reuters reported.

At the time, the company had denied that its board of directors was conducting any study for the splitting of Aesop or the sale of the British brand The Body Shop.

The move comes months after Fábio Barbosa, former president of Santander Brasil and Grupo Abril, was announced as the company’s new chief executive.

Since then, Natura&Co has been talking about reorganizing its operations to give more autonomy to the business units, make its structure lighter and potentially exit less profitable markets.

In addition to the Australian skin and hair products brand Aesop and the British cosmetics company The Body Shop, Natura also owns Avon.

with Reuters

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