Cosmetics company Coty has recently applied to list its shares on the Paris Stock Exchange in order to attract European investors and expand its presence in Europe. The parent company of CoverGirl cosmetics plans to launch a global offering of 33 million shares, with the intention of using the proceeds to reduce its debt. BNP Paribas, Crédit Agricole Corporate and Investment Bank, Citigroup, and Santander have been appointed as the joint book running managers for the upcoming listing.

Established in Paris in 1904, Coty aims to tap into the European market where several luxury companies, including LVMH and L’Oreal, are based. This move comes after Coty announced in May that it would explore a dual listing in the French capital. The company has recently witnessed a surge in demand for its high-end products, which include makeup and perfume from popular brands like Hugo Boss, Gucci, and Burberry. As a result, Coty raised its annual core sales forecast due to higher prices and strong customer demand.

Despite the impact of inflation on consumer spending for discretionary items, Coty has managed to benefit from the post-pandemic trend of increased demand for beauty products. Consumers are still willing to indulge in smaller luxuries such as fragrances and cosmetics. In fact, CEO Sue Nabi expressed confidence in July that there is significant interest among European investors to invest in Coty. The company currently generates around 45% of its annual net revenue from the Europe, Middle East, and Africa region.

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