Puig will go public on May 3 valued between 12.7 billion and 13.9 billion

The company, which will place up to 3,000 million, plans to distribute cash dividends in the near future, with a pay out of 40%

18 ()

The cosmetics firm Puig will begin trading on May 3 with a price range of between 22 and 24.50 euros per share, with which the company will reach a market capitalization of between 12.7 billion and 13.9 billion euros, according to records. in the prospectus sent this Thursday by the company to the National Securities Market Commission (CNMV) and authorized by the supervisory body.

Specifically, the size of the offer is up to 3,000 million euros, as indicated by the company, which will set the final price on April 30. This IPO would be the largest in Europe so far this year.

Thus, the firm offers a number of shares in the primary offer to obtain gross income of approximately 1,250 million euros, while the majority shareholder of the company, Puig, SL, controlled by Exea (the Puig family's holding company) offers a number of shares from the secondary offering to obtain gross proceeds of approximately €1.36 billion.

According to the offer price range, the number of shares in the primary offer will be between 51,020,408 and 56,818,181 class B securities, while the number of shares in the secondary offer will be between 55,510,204 and 61,818. 181.

In addition, Puig SL, the selling shareholder, will grant Goldman Sachs Bank Europe SE, acting as stabilization agent, a purchase option, on behalf of the managers, of over-allotment shares of approximately up to 15% of the size of the base offer for a maximum amount of 390 million euros.

The 'book-building' process begins this Friday, April 19, 2024, and is expected to conclude on April 30.

THE PUIG FAMILY WILL RETAIN A MAJORITY PARTICIPATION

Following the offer, the Puig family will retain a majority stake.

In the company's opinion, as highlighted in the prospectus, becoming a publicly traded company involves a “higher level of scrutiny” by investors, analysts, regulators and the market in general, “ensuring that the next generations of Puig family are held to the highest possible standards as they steer the company in the right strategic direction.”

“This will enable the firm to better compete in the international beauty market during the next phase of development. As a result of the offering, the company's corporate and capital structures will be better aligned with those of the best family-owned companies in the beauty sector. 'premium' beauty on a global scale, which have a strong shareholder core linked in most cases to their founding families, which encourages a long-term thinking approach,” the firm emphasizes.

Additionally, the company believes that becoming a publicly traded company will involve “greater visibility and awareness,” which should provide the company with “useful tools” for attracting and retaining talent, while opening up access to capital. as another source of financing to support the growth strategy of the company's brands and portfolio.

In addition to the proposed offer, as part of the consideration that the company must pay for the acquisition of certain minority shareholders of their respective additional stakes in Byredo and Charlotte Tilbury, the firm will issue between 17,157,271 and 19,106,961 class B shares to its subscription by said minority shareholders.

According to the prospectus, these newly issued class B shares will be additional to the shares in the primary offer and will be subscribed at the final price of the offer but without forming part of it, and none of the new minority shareholders will own 3% or more of the share capital after the offer.

DIVIDENDS

Regarding the remuneration of its shareholders, the group indicates that it has not approved any dividend policy. However, it indicates that it intends to distribute cash dividends in the near future “in a prudent manner”, the first of them after its offer in 2025 and charged to 2024 results.

In this case, it plans to maintain a 'pay out' (ratio of dividend over attributable profit) of approximately 40%, in line with its dividend history, without affecting its objectives of continuing to grow its business and execute its business plan. .

In the future, the prospectus highlights that it will evaluate whether to introduce a dividend policy, “depending on its future results and financing needs.”

Goldman Sachs Bank Europe SE and JP Morgan SE are acting as joint global coordinators and joint bookrunners for the offering. Banco Santander, BofA Securities Europe, BNP Paribas and CaixaBank act as joint bookrunners, while BBVA, in collaboration with ODDO BHF, and Banco de Sabadell act as co-lead managers.

The company and the selling shareholder will agree to certain lock-up commitments with the managers for a period between the date of signing the underwriting contract and 180 calendar days from admission.