Coty is officially moving ahead with its dual listing plans on the Paris Stock Exchange.
The beauty company, whose brands include Covergirl, Lancaster and Kylie Cosmetics, announced the launch of a global offering of 33 million shares of Coty’s outstanding Class A common stock.
Coty has applied for the listing and trading of its Class A common stock on the professional segment of Euronext Paris. Investors will then have the option to purchase Coty shares either in euros for shares listed on Euronext Paris or dollars for shares listed on the New York Stock Exchange. The completion of the proposed offering is subject to a number of conditions.
In an interview with WWD in May, Coty Inc chief executive officer Sue Y. Nabi explained why the company was mulling a dual listing.
“European investors want to buy Coty stock. It’s as simple as this,” she said. “This is the right moment to do so. Eleven quarters in line or ahead of expectation is a good moment to start this. I would say that on the Paris Stock Exchange half of the market cap is made with beauty and luxury companies, and we are a beauty and luxury company.”
The beauty company, which holds the fragrance licenses for myriad brands such as Gucci and Hugo Boss, said that in the four weeks since it released its latest quarterly earnings it has seen strong momentum in beauty demand across key markets and categories, particularly in prestige fragrances as Burberry Goddess sets new market records.
As a result, Coty is now expecting core like-for-like sales growth of between 8 percent and 10 percent for fiscal 2024, up from its earlier guidance of 6 percent to 8 percent.
At the same time, Coty lifted its adjusted earnings before interest, taxes, depreciation and amortization forecast to between about $1.08 billion and $1.09 billion, from a range of $1.07 billion to $1.08 billion.
However, the company made no changes to its earnings per share forecast, which is expected to hit a range of between 44 cents and 47 cents, below Wall Street estimates of 48 cents.