Coty has filed an application for a dual listing on the Paris Stock Exchange, the company announced Monday, September 25, 2023.
The company has initiated a global offering of 33 million shares, allowing investors to buy shares in euros for shares listed on Euronext Paris or in USD for the ones listed on NYSE.
The news comes four months after the cosmetics company announced initial plans to explore a dual listing in Paris as it sought to grow its business in Europe, reduce its debt, and make itself more attractive to investors.
It also follows the company’s recent growth spurt that came as a result of new product launches, continued demand for affordable and high-end fragrances and cosmetics, and price hikes. Another factor that has positively contributed to the company’s success is the lipstick effect, wherein consumers are indulging in smaller luxuries amidst high inflation and cutting back on big-ticket purchases. This, in turn, has resulted in an uptick in demand for Coty products from various retailers.
“Our retailers are now rebuilding and reordering. At the end of the third quarter, the level of inventory was very healthy,” Coty Chief Financial Officer Laurent Mercier told Reuters in May 2023.
For 2023, the company has raised its per-share profit forecast to 38 cents to 39 cents, up from 35 cents to 36 cents, with Q3 earnings coming out 19 cents per share, significantly higher than analysts’ expectations of 3 cents per share.
