Puig reorganises its corporate structure as a potential step towards an IPO
The Spanish group Puig, which specialises in fashion, perfumes and makeup, is reorganising its corporate structure and bringing all its businesses together under the public limited company Puig Brands SA. This is an important move as it could potentially lead to a future IPO.
This was reported exclusively by the economic newspaper Expansión, which added that Puig would not be able to go public if, as has been the case until now, its parent company remained a limited liability company.
As part of the reorganisation, the public limited company Jorba Perfumes has become the new parent company of the group and has changed its name to Puig Brands SA. In addition, it has carried out a "non-cash" capital increase of 29.30 million euros, as indicated by the aforementioned source, bringing its share capital to 144 million euros.
The company has also made modifications to its bylaws regarding the number and nominal value of shares, the creation of different classes of shares and their transferability, the operation of the board of directors and the implementation of its decisions.
The previous sole administrator of Puig Brands SA was the limited liability company Puig. However, it has now established a board of directors consisting of 14 members, with independent profiles now holding more decision-making power than the owning family.
According to Expansión, the Puig group has stated that it is not currently considering going public and that the corporate reorganisation aims to establish a single holding company. Furthermore, a limited liability company is restricted to having a maximum of 12 members on its board of directors, a limitation that does not apply to a public limited company.
Sources cited by the economic newspaper see this move as a potential precursor to a future initial public offering (IPO), which companies must undertake before going public. It is speculated that Puig's directors may have been considering this move for several months. From September onwards, the company could explore this possibility further, with a potential IPO in 2024, although this is not guaranteed as it is common for such plans to change in the financial sector.
Puig, which is 100% family-owned, set a new sales record in 2022 with 3.62 billion euros in revenue and a net profit of 400 million euros, with the fashion and fragrance division representing 74% of its turnover. The company's goal is to achieve a turnover of 4.5 billion euros by 2025.
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