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Cosmetics maker Coty launches stock offering, eyes Paris Stock Exchange listing

Published 09/25/2023, 05:00 PM
Updated 09/25/2023, 05:36 PM
© Reuters. FILE PHOTO: Covergirl makeup, owned by Coty Inc., is seen for sale in Manhattan, New York City, U.S., February 7, 2022. REUTERS/Andrew Kelly/File Photo
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(Reuters) -Coty on Monday launched a global offering of 33 million shares and said it had submitted an application for dual listing of its shares on the Paris Stock Exchange.

The CoverGirl cosmetics maker's shares were down more than 4% after the bell.

The company said it plans to use the proceeds from the offering to lower debt and for investments in its business.

BNP Paribas (OTC:BNPQY), Crédit Agricole Corporate and Investment Bank, Citigroup (NYSE:C) and Santander (BME:SAN) were acting as the joint book running managers for the stock offering and as listing agents for the Paris listing.

In May, the cosmetics and fragrance maker, which was founded in Paris in 1904, said it would explore a dual listing in the French capital as it looks to tap into European investor interest in a region that is home to many luxury companies including LVMH and L'Oreal.

CEO Sue Nabi said in July that Coty (NYSE:COTY) was exploring the Paris listing as the company believed there were a lot of investors in Europe willing to invest in the firm.

Coty makes about 45% of its annual net revenue from Europe, Middle East and Africa.

© Reuters. FILE PHOTO: Covergirl makeup, owned by Coty Inc., is seen for sale in Manhattan, New York City, U.S., February 7, 2022. REUTERS/Andrew Kelly/File Photo

The company last week raised its annual core sales forecast on the back of higher prices and strong demand, particularly for products in the high-end segment that houses makeup and perfume from brands such as Hugo Boss, Gucci and Burberry.

Coty has got a boost from the post-pandemic boom for beauty products as customers splurge on smaller luxuries like fragrances and cosmetics even as sticky inflation has dented spending on discretionary products globally.

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