Puig debuts on Spanish Stock Exchanges amid muted early trading performance

06 May 2024 --- Puig Brands has debuted on the Spanish Stock Exchanges in what has been recognized as Europe’s biggest Initial Public Offering (IPO) of the year. However, the Barcelona-based beauty and fragrance firm has so far struggled to register significant gains in trading.

The company’s stock price lingered around its initial offer price of €24.50 (US$26.39) on Friday (May 3) after a short-lived jump to €26.50 (US$28.55). However, its stock price has climbed above €25.30 (US$27.26) today (May 6).

The float of public shares values the family-owned Spanish group at €13.9 billion (US$14.98 billion).

Chairman and CEO Marc Puig celebrated the stock exchange debut as a success: “Puig’s successful IPO marks the beginning of a new and exciting chapter in our company’s long and proud history.”

“Backed by investor confidence in our strategy, we will continue to build our portfolio of brands with a focus on extending our leadership in prestige products and niche fragrances while investing in our core markets and supporting our expansion in high-potential geographies.”

The listing follows the company’s IPO, with an offering of €2,610 million (US$2,812 million. Including the up to €390 million (US$420 million) Over-allotment Option, the total offering size is up to €3,000 million (US$3,232 million), making it the largest IPO in Europe this year.

Goldman Sachs’ chair of investment banking, François-Xavier de Mallmann, who supported Puig on its IPO, expects the company to flourish: “The key is that it ticks all the boxes… it’s a great company in a growth sector… we’ve been met with strong demand from all types of investors.”

Puig has simultaneously created a new visual identity to mark the new chapter in its 110-year history. The new identity was unveiled during the bell-ringing ceremony at the Barcelona stock exchange on Friday.

The fashion, fragrance and makeup company owns brands such as Charlotte Tilbury, Jean Paul Gaultier, Carolina Herrera and Rabanne.

We recently reported on rising investor confidence in a beauty-led resurgence of Europe’s IPO ecosystem.

By Joshua Poole