Coty’s IPO of Brazil Operations Would Raise About $190 Million
(Bloomberg) -- Coty Inc., the maker of Covergirl and other brands of cosmetics, intends to raise about 1 billion reais ($190 million) with its plan to sell shares in its Brazilian unit, according to people with knowledge of the matter.
Discussions on the size of the sale are continuing and most of the funds raised will go to the New-York-based parent company, said the people, who asked not to be identified discussing private information. Coty Brasil Comercio SA filed a draft prospectus for an initial public offering on the Sao Paulo exchange earlier Thursday, without disclosing the expected size of the listing.
Coty didn’t immediately reply to a request for comment.
Coty is the latest firm seeking to surf a record IPO wave in Latin America’s largest economy, which has seen more than 40 deals this year. The company has hired Bank of America, Itau BBA and Santander Brasil for the transaction, according to the preliminary prospectus.
The New York-based firm posted stronger-than-expected sales in the second quarter, driven by results in Europe, signaling a rebound for makeup products as pandemic restrictions eased across the globe. The shares surged as much as 25% on Thursday for the biggest gain since November.
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