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

Douglas, a widely known chain on European buying streets, plans to boost about €800 million by promoting new shares within the IPO and one other €300 million by way of an fairness injection from current shareholders, in response to an announcement on Monday. CVC is looking for a valuation of greater than €7 billion for Douglas, Bloomberg Information reported in August.

Dusseldorf-based Douglas has been constructing out a community of greater than 1,800 shops in 22 international locations and increasing its e-commerce choices throughout Europe. It’s hoping to enchantment to traders with its slender give attention to higher-end magnificence merchandise, since its greatest rival, Sephora, is owned by LVMH, the French luxurious large that additionally runs manufacturers starting from Hennessy Cognac to Dior trend.

The providing can be a giant check of investor urge for food for brand new equities, and if it succeeds, it may lure further corporations to come back to market.

New listings slowed over the previous two years because the surge in rates of interest dented demand for IPOs. Now, there’s a nascent rebound as central banks finish their charge will increase and inventory markets rise to document highs. EQT AB plans to kick off the itemizing of skin-care enterprise Galderma in Switzerland as quickly as this month, Bloomberg Information reported final week.

CVC doesn’t plan to promote shares within the providing and can proceed to carry an oblique majority curiosity in Douglas, which can use the proceeds to cut back its debt. The corporate plans to refinance its remaining borrowings in reference to the IPO.

To bolster possibilities of a profitable itemizing, CVC is considering guaranteeing to purchase new shares if the corporate is unable to promote them to exterior traders, Bloomberg reported final month, offering a so-called backstop that could possibly be financed with a mortgage backed by CVC’s Douglas shares.

CVC acquired Douglas — whose roots date again to 1821 — from Creation Worldwide and the founding Kreke household in 2015 for about €2.8 billion.

By Swetha Gopinath and Tim Loh

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