Mar 21, 2022
Natura shelves NYSE listing
Mar 21, 2022
Beauty giant Natura & Co. has reportedly shelved its listing on the New York Stock Exchange, with the Brazilian firm saying it will focuses on the turnaround of its recently acquired Avon Products Inc brands until the timing is right for its U.S. IPO.
Natura, owner of its namesake Natura brand, as well as Australian skincare brand Aesop and UK beauty chain The Body Shop, has halted plans to switch its primary stock listing to the U.S. from Brazil, citing higher market volatility due to the war in the Ukraine as the reason for the delay, according to a Bloomberg report.
The NYSE pullback will see the Sao Paulo-based company home in on its Avon brand, which it acquired three years ago.
"We spent the past few months talking to our shareholders and potential investors, and the conclusion is pretty clear: the U.S. listing makes sense strategically, but maybe timing isn’t right,” Natura chief executive officer, Roberto Marques, said in an interview with Bloomberg.
“We’ll assess the appropriate moment to resume it.”
Natura previously announced plans to list on the NYSE, while having Brazilian depositary receipts (BDRs) trade on the Sao Paulo stock exchange. But that was before the VIX, an indicator of expected volatility in the S&P 500, surged to the highest level in over a year, according to Bloomberg.
In its most recent trading update, Natura said tis fourth-quarter consolidated net revenue dipped to R$11.6 billion ($2.31 billion), down 3% on the year or 5.3% at constant currency. Net income, however, reached R$695.4 million, for an increase of 292% over the previous year's R$177.4 million.
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