DOUGLAS Group plans IPO and sets price range

DOUGLAS Group plans IPO and sets price range. The DOUGLAS Group, Europe’s leading omnichannel provider for premium beauty, is planning its IPO on the Frankfurt Stock Exchange and has set a price range of 26.00 to 30.00 euros per share. This gives the company the opportunity to realise total issue proceeds of up to 907 million euros. Up to around 32.7 million new shares are to be issued. In addition, around 1.9 million existing shares are to be offered in order to fulfil tax obligations of participants in the management equity programmes.

Market capitalisation and free float

The price range was determined on the basis of a market capitalisation of EUR 2.8 to 3.1 billion. The free float after completion of the IPO is expected to amount to between 29.3% and 31.8% of the company’s share capital. The offer period for the IPO will begin on 12 March 2024 and is expected to end on 19 March 2024. The first day of trading on the Frankfurt Stock Exchange is scheduled for 21 March 2024.

Shareholdings of existing shareholders

Existing shareholders such as CVC Capital Partners and the Kreke family, who are indirect majority shareholders, will retain their shareholdings and will not sell any shares as part of the IPO. The DOUGLAS Group’s Executive Board will hold between 2.5% and 3.4% of the share capital.

Management equity programme and management participation

A management equity programme also plays an important role in the DOUGLAS Group’s IPO. Through this programme, members of the Executive Board and current and former DOUGLAS Group managers have indirectly acquired a stake in the company. After the stock market listing, the management equity programmes are wound up, whereby the participants’ indirect holdings are converted into shares in DOUGLAS AG. The participants in the management equity programme have also undertaken not to sell their shares for a period of up to two years after the IPO. This measure is intended to ensure stability and continuity in the shareholder structure.

Participation of the banks

In order to successfully carry out the IPO, well-known banks such as Citigroup and Goldman Sachs acted as joint process banks, joint global coordinators and joint bookrunners. In addition, Deutsche Bank, UBS and UniCredit were mandated as further Joint Global Coordinators and Joint Bookrunners. BNP Paribas, CVC Capital Markets and Jefferies have also been appointed as Joint Bookrunners. Intesa Sanpaolo, LBBW and RBI will act as additional Co-Lead Managers.

New Supervisory Board members to be appointed

In the course of the planned IPO, two new members will be appointed to the Supervisory Board of DOUGLAS AG as of the first day of trading. These are Pamela Knapp and Georgia Garinois-Melenikiotou, two outstanding personalities in their respective fields. Pamela Knapp is an expert in the field of auditing and economics and has been a commissioner on the Monopolies Commission since 2020. She brings extensive experience from leading positions at well-known companies such as Siemens and the market research company GfK SE. Georgia Garinois-Melenikiotou has held management positions in the consumer goods and beauty sectors and serves as a non-executive board member for various international companies and organisations, including the MIT Sloan School of Management. She has many years of experience in the FMCG and beauty industry, having previously held senior positions at companies such as Johnson & Johnson and Estée Lauder.

Proceeds and utilisation of funds

The DOUGLAS Group is targeting proceeds of around 850 million euros from the sale of the primary shares. An additional equity injection of 300 million euros into the capital reserve by the existing shareholder is expected to result in total equity inflows of around 1.15 billion euros. Together with the available cash and the gross inflow of around EUR 1.3 billion from a new EUR 1.6 billion loan agreement, the funds will be used to repay existing financial liabilities in full and to further reduce debt in order to support the company’s future growth.

Further information on the IPO online

The DOUGLAS Group’s IPO offers new opportunities for investors and will further strengthen the beauty sector on the financial market. Further information and details on the IPO are available in the IR section of the DOUGLAS Group website.

[Text/Photo: epcnews]