Puig joins Spain’s blue-chip index two months after IPO | kbnmart

Spain’s stock market advisory committee said on Tuesday that Puig will join the blue-chip index on July 22, more than two months after the cosmetics company completed the country’s biggest initial public offering in nearly a decade.

Puig will replace Melia Hotels in the IBEX 35 index.

Puig’s share price has risen more than 3% since its market debut, partly as investors bet that the company that owns the Rabanne perfume and Carolina Herrera brands would join indexes such as the IBEX, which until now has lacked a significant presence in the luxury goods sector.

The company’s last share price was €25.35, valuing the company at more than €14 billion ($15 billion).
Puig went public after buying brands such as luxury label Byredo and cosmetics brand Charlotte Tilbury in recent years to better compete with rivals L’Oreal and Estée Lauder.

Its in-house brands such as Rabanne achieved net revenues of over €1 billion in 2023, with Jean Paul Gaultier showing the fastest growth within the portfolio.

In its first note on Bouygues, JPMorgan expects the company to benefit from strong demand for luxury fragrances as well as cosmetics and skincare, and said the share price could reach 32 euros by December 2025.

The Barcelona-based company, in which the Puig family holds a majority stake, posted a 10.1% year-on-year increase in net sales in the first quarter of 2024, outpacing the broader luxury cosmetics market.

Bank of America and JPMorgan expect Bouygues’ sales to continue to outpace its listed peers. They also see merger and acquisition opportunities as Bouygues said proceeds from its initial public offering would help fund investments.