Douglas operates more than 1,800 branches across Europe. Photo credit: Dennis Diatel via Shutterstock.
As the Financial Times (FT) reported, German cosmetics retailer Douglas, majority owned by private equity firm CVC, has announced plans to list on the Frankfurt Stock Exchange.
The company is looking to raise 1.1 billion euros ($1.19 billion) to support its growth strategy and potentially revitalize Europe's sluggish initial public offering (IPO) market.
The aim is for a valuation of 6 billion euros
Douglas, which operates more than 1,800 stores across Europe, is seeking a valuation of 6 billion euros, making it Frankfurt's biggest IPO since 2022.
The FT said the company planned to issue new shares worth €800 million, with existing shareholders contributing a further €300 million.
Benefit from online growth
Despite the recent challenges in the European IPO market, Douglas remains confident.
According to the FT, Douglas CEO Sander van der Laan sees the IPO as a stepping stone to “realize our full potential” and target sales of €5 billion by 2026.
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He is confident that Douglas can outperform the broader European cosmetics market thanks to the company's strong online presence.
Frankfurt IPO awaits
Douglas' move follows the successful listing of German defense company Renk in Frankfurt last month.
Other potential European IPO candidates this year include luxury brand Golden Goose and dermatology company Galderma, both of which are backed by private equity firms.
Investor feedback on Douglas' IPO was positive, signaling a revival of European IPO activity.
With the aim of providing returns to its investors, CVC plans to use the proceeds from the IPO to reduce Douglas' annual interest payments of €300 million and improve profitability.
Douglas' Frankfurt IPO could mark a turning point for European IPOs.
The company's growth strategy, coupled with positive investor sentiment, prepares the company for a successful listing.
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