(News Bulletin 247) – The family fashion and cosmetics group, owner of the Nina Ricci and Paco Rabanne brands, made its IPO in Madrid this Friday. The operation values ​​the Barcelona group at nearly 14 billion euros, which opens the doors to the Ibex 35, the flagship index of the Madrid Stock Exchange.

The Nina Ricci, Paco Rabanne and Jean Paul Gaultier brands made their debut on the financial markets on Friday with the IPO in Madrid of their parent company, the Spanish group Puig, which is booming in the luxury sector.

One hundred and ten years after its creation, the Catalan beauty house is experiencing a small revolution with this operation, supposed to give it the means to compete with the big names in the sector such as Estée Lauder, Hermès, Kering and LVMH.

It is “a decisive step” which “will allow us to be more competitive in the international beauty market”, underlined in a recent press release the CEO of the company, Marc Puig, assuring that we are aiming for a “long-term approach “.

Founded in 1914 in Barcelona by entrepreneur Antonio Puig Castellò, the Spanish perfume and cosmetics group has carved out a place for itself in recent years among the giants of luxury and fashion, by increasing its acquisitions of prestigious brands.

The Catalan house thus controls the Paco Rabanne, Nina Ricci, Charlotte Tilbury, Carolina Herrera, Dries Van Noten and Jean Paul Gaultier labels. He also signed licensing contracts with Prada, Christian Louboutin and Comme des Garçons.

Biggest IPO of the year in Spain

Puig’s IPO price was set at 24.50 euros per share. The stock gained 0.6% to 25.62 euros as of 2:15 p.m., after peaking 6.9% at 26.50 euros.

This operation is presented by analysts as the biggest stock market launch of the year in Spain and as one of the main ones in Europe.

The amount set for the Puig action values ​​the Barcelona group at nearly 14 billion euros. This will allow it to directly integrate the Ibex 35, the flagship index bringing together the 35 largest Spanish companies.

This large-scale operation is divided into two phases: an issue of new shares, expected to bring in 1.25 billion euros, and the sale of shares held by Exea, the Puig family holding company, for nearly 1.36 billion euros.

This double operation could be supplemented by a sale of securities reserved for certain investors for a total of 390 million euros, according to the group. Enough to raise a total of around 3 billion euros.

Despite this operation, the Puig family ensures that it will remain the majority shareholder of the company with 71.7% of the shares. It will also retain a very large majority of voting rights (92.5%) within its board of directors.

A favorable context for luxury

The Catalan group’s IPO was made official on April 8, after being mentioned for the first time on October 20 by Marc Puig in person in an interview with the financial daily Financial Times.

The 62-year-old CEO then estimated that it would make it possible to impose market “discipline” on the company and avoid the possible “difficulties” that family companies face when passing the baton between generations.

It happens, in fact, “that family businesses lose their position in the market. They can start to die slowly and no one within the company is aware of it”, insisted Antonio Puig’s grandson, at the head of the group since 2004.

According to Javier Cabrera, analyst at XTB, this stock market launch should allow the Catalan beauty house to acquire “financial muscle”, taking advantage of the “good stock market dynamics of the sector”.

In fact, the context is currently favorable for luxury, whose heavyweights recorded record sales levels in 2023, despite a slight slowdown after two years of double-digit growth.

Puig, for its part, achieved a turnover of 4.3 billion euros last year and generated a net profit of 465 million euros, an increase of 16% over one year. And this dynamic could accelerate.

The acquisitions made in recent years have enabled “strong growth” and “diversification of revenues” for the group, observes Javier Cabrera, who insists on its good results in China, a market that has become essential for the luxury sector.

(With AFP)