CVC’s Beauty Chain Douglas Sets Terms for $991 Million IPO

German fragrance retailer Douglas goals to promote as a lot as €907 million ($991 million) of inventory in its preliminary public providing, as proprietor CVC Capital Companions capitalises on a rebound in European listings.

The shares are being marketed at €26 to €30 every, the corporate stated in a press release late Monday. The IPO kicked off Tuesday and indicated demand for the inventory already exceeds the deal dimension, in accordance with phrases seen by Bloomberg.

The providing seeks to lift about €850 million for the corporate by way of the sale of recent inventory, whereas the controlling shareholder — Kirk Magnificence Worldwide SA, a holding firm owned by CVC and the founding Kreke household — will promote about €57 million of present shares to cowl tax obligations for members in administration fairness programmes.

The providing will encompass as many as 34.6 million newly issued shares, with the ultimate quantity decided primarily based on the ultimate provide worth. The corporate additionally expects to get a further fairness injection of €300 million from the present shareholder into the capital reserve, bringing the entire fairness contribution to Douglas to about €1.15 billion.

The value vary implies an fairness market worth of €2.8 billion and €3.1 billion, Douglas stated.

The itemizing comes as IPOs decide up after two sluggish years introduced on by the surge in rates of interest. Skincare enterprise Galderma Group AG is looking to raise about $2.3 billion in Switzerland, whereas buyout agency Permira is seeking to listing luxurious Italian shoemaker Golden Goose and German vogue retail membership Greatest Secret.

Dusseldorf-based Douglas plans to make use of the proceeds to scale back debt, the corporate stated, confirming the plan it outlined final week in saying the deliberate IPO. The corporate plans to refinance its remaining borrowings in reference to the itemizing.

CVC and the Kreke household will stay the primary shareholders after the IPO, the corporate stated.

The providing runs by way of March 19, with the primary day of buying and selling deliberate for March 21 on the Frankfurt Inventory Alternate.

Citigroup Inc., Deutsche Financial institution AG, Goldman Sachs Group Inc., UniCredit SpA and UBS Group AG are engaged on the providing.

By Phil Serafino

Study extra:

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

Fragrance retailer Douglas is seeking to increase as a lot as €1.1 billion ($1.2 billion) by way of a list in Frankfurt, as personal fairness proprietor CVC Capital Companions bets on a rebound in European preliminary public choices.