Beauty firm Coty set for Paris debut after US$356 million offering

AMERICAN beauty-and-fragrance company Coty raised US$356 million as part of a second listing on Euronext Paris, in a welcome boost for a European market grappling with home-grown firms moving across the Atlantic.

Coty, whose shares were to start trading in Paris later on Thursday (Sep 28), sold 33 million shares in an offering, said a statement. The sale was priced at US$10.80 a share, representing a 2 per cent discount to Wednesday’s close in New York. 

Paris’ appeal for Coty lies in its developing role as a global centre for luxury stocks. Some of the largest companies in this sector, including LVMH, L’Oreal, Hermes International and Kering, are traded on Euronext Paris, creating an ecosystem of analysts and investors with deep knowledge of the industry. 

Coty has in recent months “been able to attract leading investors, particularly in France and throughout Europe”, chief financial officer Laurent Mercier said in written comments. This will help the company to “ensure real liquidity in Paris” and also diversify its shareholder base, he said.

Demand for Coty’s offering “significantly” exceeded the size of the share sale, said Mercier. 

Coty’s ties to France date back to 1904, when it was founded in Paris. The cosmetics company has called its move a return to “the historic home of beauty”.

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The company plans to use proceeds from the share sale to pay down debt and fund general corporate purposes, including strategic investments in its business, working capital and capital expenditures.

BNP Paribas, Credit Agricole, Citigroup and Banco Santander are joint global coordinators on the offering. BLOOMBERG