CVC’s Beauty Chain Douglas Sets Terms for $991 Million IPO

German perfume retailer Douglas targets to advertise as lots as €907 million ($991 million) of stock in its preliminary public offering, as proprietor CVC Capital Companions capitalises on a rebound in European listings.

The shares are being marketed at €26 to €30 each, the company said in a press launch late Monday. The IPO kicked off Tuesday and indicated demand for the stock already exceeds the deal dimension, in accordance with phrases seen by Bloomberg.

The offering seeks to carry about €850 million for the company by the use of the sale of current stock, whereas the controlling shareholder — Kirk Magnificence Worldwide SA, a holding agency owned by CVC and the founding Kreke family — will promote about €57 million of current shares to cowl tax obligations for members in administration equity programmes.

The offering will embody as many as 34.6 million newly issued shares, with the final word amount determined based totally on the final word present value. The company moreover expects to get an additional equity injection of €300 million from the current shareholder into the capital reserve, bringing your entire equity contribution to Douglas to about €1.15 billion.

The worth range implies an equity market value of €2.8 billion and €3.1 billion, Douglas said.

The itemizing comes as IPOs determine up after two sluggish years launched on by the surge in charges of curiosity. Skincare enterprise Galderma Group AG is looking to raise about $2.3 billion in Switzerland, whereas buyout company Permira is looking for to itemizing luxurious Italian shoemaker Golden Goose and German vogue retail membership Biggest Secret.

Dusseldorf-based Douglas plans to utilize the proceeds to cut back debt, the company said, confirming the plan it outlined ultimate week in saying the deliberate IPO. The company plans to refinance its remaining borrowings in reference to the itemizing.

CVC and the Kreke family will keep the first shareholders after the IPO, the company said.

The offering runs by the use of March 19, with the first day of shopping for and promoting deliberate for March 21 on the Frankfurt Stock Alternate.

Citigroup Inc., Deutsche Monetary establishment AG, Goldman Sachs Group Inc., UniCredit SpA and UBS Group AG are engaged on the offering.

By Phil Serafino

Examine further:

CVC-Owned Beauty Chain Douglas Seeks $1.2 Billion in Listing

Perfume retailer Douglas is looking for to extend as lots as €1.1 billion ($1.2 billion) by the use of an inventory in Frankfurt, as private equity proprietor CVC Capital Companions bets on a rebound in European preliminary public decisions.

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