(BFM Bourse) – US cosmetics giant Coty has filed for a dual listing on the Paris market, with the group already active on Wall Street. However, individuals will not be able to participate in the operation, it will be reserved for qualified investors.
Coty will soon join the Paris Stock Exchange in a complicated context for luxury stocks. The US cosmetics group, which has been listed on the New York Stock Exchange since 2013, said on Monday it had applied for a dual listing in Paris.
The US perfume and cosmetics specialist hinted in May that it was considering a dual listing on the Paris Stock Exchange.
In its press release, Coty specified the conditions for entering the Paris market. “Coty has submitted an application for listing on the professional segment of Euronext Paris, subject to approval by the Financial Markets Authority (AMF),” the group said in a press release. The listing “will enable Coty to launch a second liquidity center in Paris,” the company added. Coty will make its first stock market debut on this segment of Euronext Paris from 15:30, at the same time as the US markets open.
The American cosmetics specialist therefore preferred the professional department of Euronext Paris, which offers flexibility to foreign companies that want to acclimatize to the Paris market. Created by Euronext in late 2007, this section allows issuers to admit their securities to a regulated market without issuing or selling to the public.
“It is a market suitable for foreign companies looking for additional exposure and notoriety,” explained Damien Pelletier, Euronext Paris entry director at BFM Bourse.
Small holders will not be able to place themselves directly on Coty’s securities because, as the name suggests, the professional section is actually aimed at so-called qualified investors, that is, the informed public who are aware of the risks they are taking. Dive into this very specific compartment.
BNP Paribas, Crédit Agricole Corporate and Investment Bank, Citigroup and Santander acted as co-lead managers to support Coty in this listing.
Return to Europe
As for the size of the issue, the company will issue 33 million shares on this occasion “to the public in the United States” and only to professional investors in the European Union.
This capital increase should be “between 300 and 350 million euros”, estimated Laurent Mercier, Coty’s financial director, quoted by AFP.
The proceeds of the issue will primarily be used to reduce Coty’s debt, but also to finance strategic investments in its activities. The dual listing also aims to strengthen Coty’s presence in Europe and “offer additional means to reach untapped investors in the market”, the company explained last May.
“Paris is the historical cradle of beauty and this sector still has a special attraction for investors in the region,” emphasized Peter Harf, President of Coty.
Coty highlights its heritage of more than 100 years in France – the company was founded in Paris in 1904 – and its “significant commercial footprint in Europe”. The company also generates 45% of its annual turnover in Europe, the Middle East and Africa.
Last week, the American group revised upwards its growth outlook for the financial year 2024, due to the very good performance of the group in all its markets and especially in the perfume segment of this category. The group particularly benefited from the success of the Burberry Goddess perfume launch. Coty owns other licenses for big brands such as Gucci, Chloé, Marc Jacobs for perfumes and sells cosmetics and make-up under the brands Bourjois, Max Factor or Rimmel.
In this context, Coty now expects its turnover to grow at constant volumes and exchange rates between 10% and 12% in the first half of the 2024 financial year (the company will close its accounts on June 30), compared with 8% to 10% as previously communicated. Revenue for fiscal 2024 is expected to grow at constant volumes and exchange rates in the range of 8% to 10%, compared to 6% to 8% as previously reported by Coty.
The adjusted Ebitda (gross operating surplus) forecast is also increased. It is now set at a range of $1.075 billion to $1.085 billion for fiscal 2024, based on current exchange rates, compared to a range of $1.065 billion to $1.075 billion as previously reported.
Sabrina Sadgui – ©2023 BFM Bourse