In a Forbes article published last week, the possibility was raised that the Puig company, renowned in the perfume, fashion and cosmetics fields, could be floated on the stock market in the near future. Even so, the company's president, Marc Puig, continues to state, as stated in the article, that this possibility is not on the table, although sources close to the company suggest that an IPO is a natural move for the company in its search for capital and its desire to compete with the big companies in the luxury sector.
Puig has experienced significant growth in recent years by expanding its brand portfolio through strategic acquisitions. With well-known brands such as Paco Rabanne, Carolina Herrera and Nina Ricci, the company has achieved a 10% share of the global selective perfumery market. It has also made important acquisitions, such as the prestigious make-up company Charlotte Tilbury, and has acquired significant stakes in other brands such as Kama Ayurveda, Loto del Sur and Byredo.
However, as Puig seeks to compete with big-name multinational companies such as LVMH and L'Oréal, the need to access more capital is becoming apparent. Competitors are already listed on the stock exchange, which gives them advantages in terms of capital and access to credit. The size and growth of the luxury sector, with a turnover of more than $350 billion by 2022, supports the importance of solid financial resources to maintain the pace of growth.
The article highlights Puig's strategic moves in recent times, such as expansion into new markets, especially in Latin America, the United States, India and China, as well as the search for high-level executive profiles to strengthen the company's management structure. In addition, mention is made of the recent change in the company's structure, with the transformation of the public limited company Jorba Perfumes into its parent company Puig Brands S.A., indicating a focus on meeting the governance standards required to enter the listed market.
Although Puig's IPO is not yet confirmed, indications and recent changes in the company's strategy and structure suggest that it is a possibility under serious consideration.