NEW YORK — Coty Inc.’s long-awaited initial public offering is reportedly set to launch with shares to trade on Thursday, according to published reports.
The $1 billion-plus IPO is expected to be a hit, bankers reportedly said. The beauty company will not get any money from the IPO. Majority owner Joh. A. Benckiser will be selling a stake worth $806 million at the upper end of the expected price range, according to reports. Private-equity firms Berkshire Partners and Rhone Capital are selling equal stakes worth $126 million at the upper range.
The Wall Street Journal reported that the deal could raise up to $1.22 billion, including the possible sale of extra shares to underwriters. That would make it the largest U.S.-listed IPO ever for a consumer-products company, according to the WSJ, which cited Dealogic.
Last year, Coty filed to raise as much as $700 million in an IPO. That filing with the Securities and Exchange Commission came about a month after the beauty company dropped its bid for Avon because of Avon’s “delay and unwillingness to engage in discussions.” However, the company ended up postponing the IPO to give its new CEO Michele Scannavini time to acclimate to the post, according to reports.