Cosmetics maker Coty submits application to list on Paris Stock Exchange
2023.09.25 17:15
© Reuters. FILE PHOTO: Covergirl makeup, owned by Coty Inc., is seen for sale in Manhattan, New York City, U.S., February 7, 2022. REUTERS/Andrew Kelly/File Photo
(Reuters) – Coty (NYSE:) has submitted an application for dual listing of its shares on the Paris Stock Exchange, the company said on Monday, as the CoverGirl cosmetics parent looks to tap into European investor interest.
The company said it was launching a global offering of 33 million shares and plans to use the proceeds to lower debt.
BNP Paribas (OTC:), Crédit Agricole Corporate and Investment Bank, Citigroup (NYSE:) and Santander (BME:) were acting as the joint book running managers for the listing.
In May, the cosmetics and fragrance maker, which was founded in Paris in 1904, said it would explore a dual listing in the French capital as it looks to expand in the European region that is home to many luxury companies including LVMH and L’Oreal.
Coty last week increased its annual core sales forecast on the back of higher prices and strong demand, particularly for products in the high-end segment that houses makeup and perfume from brands such as Hugo Boss, Gucci and Burberry.
The company has got a boost from the post-pandemic boom for beauty products as customers splurge on smaller luxuries like fragrances and cosmetics even as sticky inflation has dented spending on discretionary products globally.
In July, CEO Sue Nabi said Coty was exploring the Paris listing as the company believes there are a lot of investors in Europe willing to invest in the firm.
Coty makes about 45% of its annual net revenue from Europe, Middle East and Africa.
