Coty pushes ahead with plans for dual Paris listing

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Debt-laden cosmetics maker Coty will issue 33 million new shares as part of a plan to seek a dual listing in Paris, hoping a foothold on the French exchange will boost its profile among beauty-focused investors.

Makers of cosmetics lines including CoverGirl and Maxx Factor will sell shares to global investors, The company announced on Monday. Subject to approval by France’s market regulator, the shares will be offered publicly for the first time in the United States and via a private placement on Euronext Paris’ Professional segment.

Coty first announced in May that it was considering a dual listing to expand its current position on the New York Stock Exchange, where it first listed in 2013. The company said at the time it wanted to tap European investors and industry expertise in a market that is also home to L’Oréal, the world’s largest beauty company by sales.

The expanded offering to investors demonstrates the company’s confidence in its turnaround under the leadership of beauty industry veteran Sue Y Nabi. Sue Y Nabi was hired in 2020 as the fifth CEO in as many years, tasked with revamping operations.

Coty has struggled with management turnover and a mountain of debt, but the stock price has nearly tripled since she took over, from a low of less than $4 to more than $11.80 today.

The decision to explore a dual listing earlier this year was backed by the beauty company’s controlling shareholder JAB Investments, which is backed by Germany’s billionaire Reimann family.

BNP Paribas, Crédit Agricole, Citigroup and Santander are jointly acting as bookrunners for the offering. Coty said it will use the proceeds to pay down debt and make strategic investments in the business.

Founded in Paris in 1904, Coty now owns more than 70 brands, including beauty licenses from fashion houses owned by French group LVMH and Kering. Under Nabi, Coty has expanded its line of high-end beauty products while working to improve the performance of its struggling mass-market cosmetics unit.

Last year, the company reported its first profit in five years and said it expected to achieve its goal of reducing leverage to three times EBITDA by the end of 2023.

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