This Week, Puig Tries to Break the IPO Curse; Adidas Takes a Victory Lap
The Spanish beauty and fashion conglomerate’s smart acquisitions and diverse portfolio could be a big draw for investors. Plus, Adidas is set to confirm its stellar first quarter.
This week, we might get that rarest of things: a successful initial public offering.
Puig, the Spanish, family-owned conglomerate that counts Charlotte Tilbury, Paco Rabanne, Byredo and other brands in its portfolio, is scheduled to go public in Spain on May 3. The company is angling to raise €2.6 billion ($2.8 billion) at a €13.9 billion valuation, Bloomberg reports. While anything can happen, most signs point to the Puig family, which will retain a controlling stake, getting what they want.
Fashion and beauty don’t have a great track record when it comes to IPOs lately. Birkenstock and Amer Sports had bumpy receptions in the market despite owning red-hot brands. The consensus forming around Puig is that it may fare better than either of those companies. As The Business of Beauty executive editor Priya Rao recently laid out, the conglomerate’s focus on prestige beauty, its diversification and a sterling track record of acquisitions all bode well for a warm reception from investors. A demonstrated willingness to give non-family executives wide latitude to direct the business is also likely a factor.
The biggest question facing Puig is whether it’s large enough to compete with the big conglomerates that dominate luxury fashion and beauty. A $15 billion market capitalisation only sounds big until you consider that L’Oreal is nearly 17 times bigger. Having an extra €2.6 billion to spend on acquisitions and further scaling its brands will go a long way towards closing that gap.