(News Bulletin 247) – The American cosmetics giant Coty has filed a request for a dual listing on the Paris market, the group already being present on Wall Street. But individuals will not be able to participate in the operation, it will be reserved for qualified investors.

Coty will soon join the Paris Stock Exchange in a complicated context for luxury stocks. The American cosmetics group, already present on the New York Stock Exchange since 2013, indicated on Monday that it had filed a request for dual listing in Paris.

The American perfume and cosmetics specialist indicated in May that it was considering a dual listing on the Paris Stock Exchange.

In its press release, Coty specified the terms of listing on the Paris market. “Coty has submitted an application for listing in the professional segment of Euronext Paris, which is subject to approval by the Financial Markets Authority (AMF),” the group said in its press release. This listing will “allow Coty to initiate a second liquidity center, in Paris,” adds the company. Coty will make its first stock market debut on this segment of Euronext Paris from 3:30 p.m., at the same time as the opening of the American markets.

The American cosmetics specialist has therefore favored the professional compartment of Euronext Paris, which offers flexibility to foreign companies wishing to acclimatize to the Parisian market. Created by Euronext at the end of 2007, this compartment allows issuers the admission of their securities to a regulated market without issue or sale to the public.

“It’s a market suited to foreign companies looking for additional exposure and notoriety,” explained Damien Pelletier, director of admissions at Euronext Paris to News Bulletin 247.

Small holders will not be able to position themselves directly on Coty securities, since as its name indicates, the professional compartment is in fact aimed at so-called qualified investors, i.e. an informed public aware of the risks they run. venture into this very specific compartment.

BNP Paribas, Crédit Agricole Corporate and Investment Bank, Citigroup and Santander acted as co-lead managers to support Coty in this listing.

A return to Europe

Regarding the size of the issue, the company will issue 33 million shares on this occasion, “to the public in the United States” and only to professional investors in the European Union.

This capital increase should be “in a range between 300 and 350 million euros”, estimated Laurent Mercier, Coty’s financial director, quoted by AFP.

The proceeds of the issue will mainly be intended to reduce Coty’s debt but also to finance strategic investments in its activities. This double listing also aims to strengthen Coty’s presence in Europe and “to offer an additional means of reaching untapped investors in the market”, explained the company last May.

“Paris is the historic cradle of beauty, and the sector still has a particular attraction for investors in the region,” underlined Peter Harf, president of Coty.

Coty highlights its heritage of more than 100 years in France – the company having been founded in Paris in 1904 – and “its substantial commercial footprint in Europe”. The company also generates 45% of its annual turnover in Europe, the Middle East and Africa.

Last week, the American group revised upwards its growth prospects for the 2024 financial year, due to the very good performance of the group in all of its markets and in particular in the perfume segment of the category. Prestige. The group notably benefited from the success of the launch of the Burberry Goddess perfume. Coty owns other licenses for major brands such as Gucci, Chloé, Marc Jacobs for perfumes and markets cosmetic and makeup products under the Bourjois, Max Factor or Rimmel brands.

In this context, Coty now expects growth at constant scope and exchange rates of its turnover between 10%-12% for the first half of the 2024 financial year (the company closes its accounts on June 30), compared to 8 %-10% as previously communicated. Revenue for the 2024 financial year is expected to grow at constant scope and exchange rates in a range of 8%-10%, compared to 6%-8% as previously communicated by Coty.

The adjusted Ebitda (gross operating surplus) forecast is also raised. It is now established at a range of $1.075 billion to $1.085 billion for fiscal 2024, based on current exchange rates, compared to a range of $1.065 billion to $1.075 billion as previously communicated.