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New York-based beauty conglomerate Coty (NYSE:) Inc., parent company of brands like CoverGirl and Kylie Cosmetics, made its debut on the Paris Stock Exchange on Thursday. The company offered 33 million common shares at €10.28 ($10.80) per share. This move was part of Coty’s strategy announced in May to strengthen its position in Europe and reach investors in the region through a dual listing.
According to InvestingPro’s real-time metrics, Coty has an adjusted market cap of $9560M and a Price/Earnings ratio of 19.05, reflecting its profitability relative to its share price. The company’s revenue growth over the last quarter of the fiscal year 2023 was 15.69%, indicating a positive trend in its financial performance.
On the first day of trading on Euronext Paris, Coty’s stock remained stable, closing the day down about 0.1 percent to €10.39. The maker of CoverGirl and Lancaster products began trading on the exchange at 3:30 p.m. CET. Over the last week, the company’s stock has taken a significant hit, with a one-week price total return of -10.19% as per InvestingPro Data.
The company, which is already listed on the New York Stock Exchange, had launched a global offering of 33 million shares of its outstanding Class A common stock as part of this plan for a double listing in Paris.
Coty chief executive officer Sue Y. Nabi explained the company’s decision to explore a dual listing during an interview with WWD in May. She stated that European investors were interested in buying Coty stock and that the timing was right for such a move. “Eleven quarters in line or ahead of expectation is a good moment to start this,” she said, adding that half of the market cap on the Paris Stock Exchange is made up of beauty and luxury companies, which aligns with Coty’s business profile.
InvestingPro Tips suggest that Coty’s strong earnings should allow management to continue dividend payments, despite the fact that it does not currently pay a dividend to shareholders. The company has been consistently increasing its earnings per share, and four analysts have revised their earnings upwards for the upcoming period.
Coty, founded in Paris in 1904, aims to use the net proceeds from this offering primarily to pay off outstanding debt and for general corporate purposes such as investments, working capital, and capital expenditures. This aligns with Coty’s long-term goal of reducing debt following its acquisition of several Procter & Gamble beauty brands in 2016. As of June 30, the end of its most recent fiscal year, Coty’s net debt stood at $4 billion, a significant reduction from nearly $9 billion in 2020.
BNP Paribas (OTC:), Crédit Agricole Corporate and Investment Bank, Citigroup (NYSE:), and Santander (BME:) are acting as joint coordinators and agents for the Paris Stock Exchange listing. For more insights and tips on Coty and other companies, check out InvestingPro which provides numerous additional tips to help investors make informed decisions.
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