The Puig cosmetics firm will begin trading this Friday at a price of 24.5 euros per share, the highest of the range set in the prospectus, which represents a market capitalization of 13,920 million euros in what will be the largest IPO in Europe so far this year. This has been Puig’s stock market debut.
Specific, the shares of the Catalan company, which contemplated a price range of between 22 and 24.50 euros per share to debut on the stock market, will be listed on the Barcelona, Madrid, Bilbao and Valencia Stock Exchanges with the ticker tag ‘Puig’ through the Stock Market Interconnection System (Continuous Market).
“Today a new and decisive chapter opens in Puig’s 110-year history. The price of our offering reflects significant investor demand and is a recognition of the hard work and unwavering dedication of all Puig teams, who demonstrate creativity and passion for innovation every day,” stressed the executive president of Puig, Marc Puig. The company has noted that the offering has been oversubscribed multiple times across the entire price range, demonstrating “the significant demand from international and domestic institutional investors.”
The PUIG family will retain a majority position
After the offer, assuming the full exercise of the over-allotment option, the Puig family, through Puig, SL, will retain 71.7% of the economic rights of the company and 92.5% of its rights. of vote. Likewise, Puig Brands and the selling shareholder have agreed to certain commitments of non-disposal (‘lock-up’) with the insurance entities of the offer for a period between the date of signing the insurance contract and 180 calendar days from the admission.
Directors, senior management and certain employees of the company are also subject to certain disposition restrictions for a period between the date of signing the underwriting agreement and 365 or 180 calendar days after admission, but only with respect to a certain number of class B shares. In the company’s opinion, 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 the Puig family are held to the highest possible standards while leading the company in the right strategic direction.” “This will allow 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 global premium beauty sector, which have a strong core shareholding linked in most of the cases to their founding families, which encourages a long-term thinking approach,” the firm emphasizes.
Likewise, 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 access to capital. as another source of financing to support the growth strategy of the company’s brands and portfolio.
About the payment of 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 the results of 2024. 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, not affecting its objectives of continuing to grow its business and execute its business plan.
For its part, CriteriaCaixa, the holding company that manages the business assets of the ‘la Caixa’ Foundation, has acquired class B shares representing approximately 3.05% of the share capital of Puig Brands, within the Public Offering (IPO) process. To this end, CriteriaCaixa has committed an investment of 425 million euros, in an operation that is part of its investment policy, which “selects leading companies in highly attractive sectors, with the capacity for growth and generation of value.”
In this sense, this investment will allow Criteria to gain exposure to the fashion and beauty industry, which has proven, according to the entity, to be resilient in crisis situations, with annual growth of close to 5% for decades. Likewise, CriteriaCaixa highlighted that the ‘pay-out’ proposal announced by Puig fits into its strategy of seeking investment options with a long-term focus that maximize dividend profitability, and that allow it to generate the necessary resources so that its sole shareholder , the ‘la Caixa’ Foundation, can carry out its social action.
Presents a new logo
Taking advantage of its IPO, Puig will debut a new logo. Created in collaboration with Parisian art and design agency M/M, the new logo is based on the work of Swiss designer Yves Zimmerman for the company and includes an original typeface, Paralelo, which “reinterprets the spirit of Méridien”, a typeface 1955 by Adrian Frutiger that Zimmerman established for Puig more than 50 years ago. It includes a new symbol that evokes “an infinite line of creativity” inspired by a painting by Miró, while also evoking the 1970s Puig logo designed by Zimmerman.
Founded in 1914 in Barcelona, Puig is a large group with cosmetics, fashion and skin care businesses that had a turnover of 4,304 million euros last year and is present in 32 countries. The company owns such well-known brands as Carolina Herrera, Nina Ricci, Paco Rabanne and Jean Paul Gaultier.
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