Coty's IPO is moving forward nicely: The beauty behemoth's initial public offering is now said to be valued at $1.22 billion, almost double what it was originally reported to be worth.
According to WWD, the offering has not been officially priced but the initial range is set at $16.50 to $18.50. JAB Holdings II BV, which is tied to the billionaire Reimann family, Berkshire Partners and Rhône Capital are expected to collectively unload as much as 65.7 million shares.
At $16.50-$18.50 a share, it doesn't take a mathematician to know that these investors are about to make serious bank--and they're doing it without giving up much control of the company. After the offering, the three investors will still control 97.7 percent of stockholders’ voting power and 81.1 percent of the firm’s equity.
While the IPO was originally planned for last September, the company, which is behind pretty much every blockbuster fragrance, pushed it to 2013 because of a CEO switch up in May 2012. In the end, though, the delay might work in Coty's favor: financial insiders are saying the IPO is coming at precisely the right time.
“The overall backdrop is good,” Colin Welch, president and chief operating officer of investment bank Financo, told WWD. “The valuation environment is pretty attractive, suggesting that people see the long-term growth of the sector. They see the fact that these larger beauty companies have global reach, so it’s a diversification approach as well.”
The deal could value the company at over $7 billion.