New York-based Coty has invited BNP Paribas and Citigroup to participate in the deal, people familiar with the matter said. They requested anonymity because the information is private. The company is considering raising new funds through a listing, some people familiar with the matter said.
Coty plans to formally announce details of the plan as soon as possible in the coming days and could go public soon, people familiar with the matter said. Coty shares, which have gained 43% this year, rose 2.4% to $12.27 in New York trading on Thursday, giving the company a market value of about $10.5 billion.
The company said in May it was considering a second listing in Paris, the “historic home of beauty,” to attract new investors and strengthen its presence in the region.
Deliberations are ongoing and details of Coty’s planned offering could change based on market conditions, people familiar with the matter said. Representatives for Coty, BNP Paribas and Citigroup declined to comment.
Coty on Wednesday raised its sales forecast for the current fiscal year, citing continued strong demand for high-end fragrances such as its recently launched “Burberry Goddess.” The Gucci perfume maker now expects year-on-year sales growth of 8% to 10% in the fiscal year that starts in July.
That’s up from the 6% to 8% sales growth forecast the company gave in August. Coty said in a statement Wednesday that it expects sales to accelerate at a faster pace in the first half of the fiscal year.
