Puig has ended the session of its debut on the stock market flat and in 24.50 euros, the price of placement. The company has marked a first change at 25.54 euros (+4.24%), it has subsequently advanced strongly, to record maximums at 26.50 euros (+8.16%)although it has quickly deflated, showing signs of a considerable volatility. The cosmetic and fashion group has starred in the biggest stock market debut in Europe this year and the most important in Spain since 2015. The beauty multinational has indicated that the listing occurs after the Initial Public Offering for an amount of 2,610 million euros, «including the over-allotment option of up to €390 million, the total size of the offering is up to €3 billion, making it the largest IPO in Europe this year.» During the traditional ringing of the bell, the company's executive president, Marc Puighighlighted that the group's stock market placement has found a «massive response from investors«despite the geopolitical uncertainties and has shown his gratitude to all those who have supported the company in its process of exiting the stock market. «The success of Puig's IPO marks the beginning of an exciting new chapter in our company's long and proud history. Backed by the investor confidence in our strategywe will continue to build our portfolio of own brands focusing on expanding our leadership in prestige products and niche fragrances, while we invest in our main markets and support our expansion in high potential geographies,» he added. He also highlighted that «during all These years we have managed a private company as if it were listed and Now we will manage it as if it were private«, with «high beams». The firm has detailed that «the offer has been oversubscribed multiple times throughout the price range, which demonstrates the significant demand from international and national institutional investors.»
The Puig family will retain 71.7% of the economic rights of the company and 92.5% of their voting rights. In this sense, CriteriaCaixathe holding company that manages the business assets of the 'la Caixa' Foundation, has acquired Class B shares representing 3.05% of Puig's share capital. To this end, he has committed a investment of 425 million euros. The pay-out proposal announced by Puigwith a Stable and growing dividend of around 40% of the result, fits into CriteriaCaixa's strategy of seeking investment options with a long-term focus that maximize dividend yield, and that allow it to generate the necessary resources so that its sole shareholder, the 'la Caixa' Foundation, can carry out carry out their social action. Bankinter experts estimate that «the starting price represents a 15% discount compared to the sector average (Estee Lauder, Shiseido, Coty, Interparfums) in terms of Enterprise Value (EV)/EBITDA 2023 and 34% compared to the sector leader, L'Oreal.» In his opinion, «a reasonable discount could be 20% compared to L'Oreal or a premium of 3% with respect to the sector, which would imply listing in the range 30-31 euros«. Therefore, they specify that «the IPO seems attractive to us considering the placement price (24.5 euros/share).» However, Whether it continues to be so will depend on what it does at its stock market debut.they comment.
«THE MULTIPLE AT WHICH IT QUOTES WILL BE DEMANDING»
Puig and its first hours on the stock market have aroused the interest of strategists and there are even those who have not been able to avoid the comparisons with Inditex. «The comparison with the Galician one is inevitable, due to its family component and because of the way in which the family keeps the majority of the decision-making power,» emphasizes Javier Cabrera, an XTB analyst. However, for the expert, from here on, «Puig You will have to convince investors that the company's value proposition is good and that the double-digit growth of its accounts in the last two years is not something temporary, but can be maintained over time. «If we are not able to achieve that growth rate in the coming quarters, we could see a share price adjustmentdue to the high expectations with which the company has gone public and a demanding valuation,» he adds. In short, for Cabrera, Puig is a quality company that It has all the attributes to have a great performance in the stock market in the long term. «However, price always matters and the multiple at which it quotes will be demanding. This does not mean that it will do poorly on its first day, but the market will be very attentive to its results throughout the year, to justify the valuation with which it jumps to the Spanish parquet. Definitely, It is a company to keep a close eye on.«.