By Olivia Oran
June 12 Coty priced its initial public
offering at $17.50 a share on Wednesday in the middle of the
expected range, a source briefed on the matter said, as the
maker of celebrity perfumes went public after a recent surge in
beauty company stock values.
The New York-based company, majority-owned by the
billionaire Reimann family of Germany through their Joh A.
Benckiser investment vehicle, raised nearly $1 billion by
pricing 57.1 million shares as planned.
It had intended to price shares at a range of $16.50 to
Coty, founded in Paris in 1904 by Francois Coty, said it
would not receive any proceeds from the share sale. Joh. A
Benckiser, which owns around 82 percent of Coty and whose
additional holdings include shoemaker Jimmy Choo and coffee
company Caribou Coffee, is offering 43.6 million shares.
Private equity firms Berkshire Partners and Rhone, which
each own around 7.1 percent of Coty, are offering the additional
Coty posted net revenue of $3.6 billion in the nine months
ended March 31, flat from the same period a year prior.
The company intended to go public last year, but pushed back
its efforts following a CEO change. CEO Michele Scannavini took
over from Bernd Beetz last July.
Coty made a failed $10.7 billion bid for Avon Produts Inc
Coty sells perfumes under the names of celebrities like
Beyonce Knowles, Lady Gaga and Jennifer Lopez.
Coty's IPO comes as other beauty companies like Estee Lauder
Cos Inc and Elizabeth Arden Inc have seen their
shares rise more than 22 and 32 percent, respectively, in the
last 12 months.
It also comes amid a dearth of large IPOs from U.S. consumer
BofA Merrill Lynch, J.P. Morgan and Morgan Stanley are
leading the offering.
Coty will list its shares on the New York Stock Exchange
under the symbol COTY.