BARCELONA/LONDON (Reuters) – Beauty products brand Puig was stable at mid-session on Friday, its first day of trading after its IPO, the largest on the Spanish markets in almost a decade.
The share opened at 25.68 euros, against an issue price set at 24.5 euros. The stock rose to 26.12 euros in the first moments of trading, before falling to 24.66 euros at 11:42 GMT.
The initial public offering (IPO) attracted a lot of interest, with the order book being oversubscribed several times, allowing the issue price to reach the top of the range offered by the banks and giving Puig capitalization of 13.9 billion euros.
Puig and the family of the same name which controls the group hope to raise up to 3 billion euros during the IPO, the group having issued category B shares which confer fewer voting rights to their holders.
“Our intention is that our family stays behind this project, because a family business seeks to achieve results in the short term, but also to do things well in the long term,” Marc Puig, president and CEO, told reporters during the IPO opening ceremony in Barcelona.
“(Puig), which sells high-end perfumes and is very adept at generating desire, has applied its strategy to its IPO (…): many are looking to invest in the group,” summarizes Xavier Brun, portfolio manager at Trea AM, which only obtained 10% of the value of its offer issued during the creation of the order book and intends to buy more securities.
Puig, which owns the Rabanne and Carolina Herrera brands, attracts long-term investors who associate the group with the luxury sector, said Xavier Brun.
Demand could be supported by the possible inclusion of the stock in the IBEX 35 index, the main Spanish index, adds the manager.
Puig reported a 10.1% year-on-year increase in net sales in the first quarter, outpacing the high-end beauty market.
The company plans to expand in Asia, with EMEA (Europe, Middle East and Africa) markets accounting for 54% of its net revenue in 2023.
(Report by Joan Faus, Pablo Mayo Cerqueiro and Corina Pons, Corentin Chappron, edited by)
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