CVC-Backed German Perfume Retailer Douglas Tumbles in Debut

German fragrance retailer Douglas AG slumped as a lot as 11 % because it started buying and selling in Frankfurt after elevating €850 million ($929 million) within the nation’s largest itemizing this yr.

The CVC-backed firm’s shares hit a low of €23.20 a share, in contrast with the IPO value of €26. The providing was pitched on the backside of an marketed vary to entice buyers again right into a market that has been subdued for a lot of the previous 18 months.

Douglas’s itemizing comes concurrently EQT AB’s skincare enterprise Galderma Group AG, which is about to begin buying and selling on Friday. Whereas such offers have been fuelling a resurgence in European itemizing exercise, value drops like this additionally undermine buyers’ confidence and make them extra cautious about shopping for into future new points.

Guillermo Hernandez Sampere, head of buying and selling at asset supervisor MPPM, mentioned there aren’t many causes to put money into an organization that’s returning to inventory markets with a pile of debt. There’s “not a lot confidence left in them,” he mentioned, including “have a look at the IPOs in Germany for the final 5 years, it’s not our proudest moments.”

Shares which have listed in Germany over the previous 5 years and that at the moment are buying and selling beneath their supply value embody Thyssenkrupp Nucera, Cherry SE, Bike24 Holding AG, Auto1 Group SE, Mister Spex SE, About You Holding SE and TeamViewer SE. Frankfurt has a combined monitor file, nevertheless, with some launches reminiscent of Renk Group AG and Hensoldt AG displaying market-beating returns.

Douglas’s share sale raised about €890 million in all, with Kirk Magnificence Worldwide, a holding firm owned by CVC in addition to the sweetness chain’s founding Kreke household, elevating nearly €39 million within the providing. The newly-listed firm will probably be valued at €2.8 billion, based mostly on the providing value. CVC will maintain a 54.4 % stake, whereas the Kreke household will personal 10.2 %.

Douglas, which was based greater than 200 years in the past, sells a number of premium magnificence merchandise by about 1,850 shops. The European buying centre-staple additionally has a web based presence.

By Swetha Gopinath

Study extra:

CVC-Backed Perfume Retailer Douglas Raises $967 Million IPO

German fragrance retailer Douglas AG priced its €890 million ($967 million) preliminary public providing at €26 a share, the underside of a marketed vary.