initial public offerings (IPOs) trading on American exchanges

Friday, June 29, 2012

Coty’s IPO Aims to Raise $700M

* BofA Merrill Lynch, JP Morgan, Morgan Stanley lead underwriters on IPO
* Coty posted revenue of $3.58 bln for nine months ended March 31.

(Reuters) - Coty Inc, which sells perfumes under Calvin Klein, Davidoff and Chloe brands, filed to raise as much as $700 million in an initial public offering, after dropping a $10.7 billion takeover bid for Avon Products Inc last month.

The IPO market has seen little action for more than a month after Facebook Inc's botched market debut and the European debt crisis forced companies to delay their plans.

The number of companies planning a U.S. listing has dropped 40 percent to 27 in the second quarter compared with the first.

However, offerings by consumer companies tapping the rich have done well, including the debut of luxury brand Michael Kors Holdings Ltd and high-end luggage maker Tumi Holdings Inc, given a strong demand for their high-priced products even during the slowdown.

"Coty is a quality name and this will be one of the more anticipated offerings of the year," said President David Menlow. "The brand name almost sells itself."

Coty, founded in Paris in 1904 by Francois Coty, is majority owned by Joh A Benckiser, the investment vehicle for the billionaire Reimann family of Germany.

Benckiser also holds interests in Jimmy Choo shoes and British multinational consumer goods company Reckitt Benckiser Plc.

Warren Buffett's Berkshire Hathaway and private equity firm Rhone each own a 7.5 percent stake in Coty, which is also the world's No. 2 fragrance maker.

The company runs the gamut from luxury perfumes for fashion house Bottega Veneta to skin care products sold at Wal-Mart Stores Inc.

In recent years, Coty has made acquisitions to grow and diversify its products. In 2010, it bought skin care brand Philosophy from Carlyle Group, nail color company OPI and a majority stake in Chinese skin care company TJoy Holdings.

Coty's made an audacious bid for Avon, a company that has nearly three times its revenue.

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