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Intercos Group IPO Values Firm at 1.2 Billion Euros

The first day of trading on the Italian Bourse is set on Nov. 2.

MILAN — Intercos Group has successfully concluded its offering period and is gearing up for its first day of trading on the Italian Bourse on Nov. 2.

Based on the offering price for the shares, which has been set at 12.50 euros, the total value of the transaction amounted approximately to 350 million euros and the company’s capitalization at the start of trading will be about 1.19 billion euros. This includes 44 million euros of capital increase, whose net proceeds will be used to support the implementation of the cosmetics manufacturer’s strategic goals.

Based on the requests received in the context of the offering by international qualified investors, approximately 25.4 million shares have been allocated. In addition to 3.5 million newly issued ordinary shares in tandem with the capital increase, the allocated shares included 21.9 million existing ones offered by the firm’s key shareholders: L Catterton-owned CP7 Beauty LuxCo Sàrl holding company (13.9 million shares); The Innovation Trust, which is controlled by Ontario Teachers’ Pension Plan (5.9 million shares); Dafe 3000 and Dafe 4000, two entities controlled by Intercos Group’s founder and executive chairman Dario Ferrari (216,700 shares and 1.8 million shares, respectively) as well as the company’s own shares (92,250 shares).

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CP7 Beauty Luxco Sàrl and Ontario Teachers’ Pension Plan own 33.8 percent and 20.6 percent of the company, respectively. Last year, Ferrari and his family holding Dafe signed an agreement with an affiliate of the Singapore sovereign wealth fund GIC for the sale of minority stakes in the subholdings that control Intercos. At the end of the operation, GIC held a minority stake in Dafe 3000 Srl, Dafe 4000 Srl and Dafe 5000 Srl, which together control 44.4 percent of Intercos.

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CP7 Beauty LuxCo Sàrl, Innovation Trust and Dafe 4000 have granted an option to the joint global coordinators — BNP Paribas, Morgan Stanley, UBS and Jefferies — to borrow additional 2.6 million shares to cover eventual over-allotments, short sales and stabilization activities.

As a result, the free float amounts to 26.5 percent of the company, or 29.2 percent in case of full exercise of the over-allotment option.

Ferrari’s Dafe 4000 and Dafe 5000 have elected to participate in the loyalty voting program based on their holding of shares for an uninterrupted period of 24 months prior to the admission to trading. Following the completion of the offering, Dafe 4000 and Dafe 5000 — which will own 39 million shares corresponding to 40.7 percent of the company — will hold 57.9 percent of voting rights. The public shareholders will hold the aggregate 18.8 percent of the total voting rights.

As reported, Intercos Group kicked off its offering period last week, setting the price range of its shares between 12 euros and 14.50 euros and projecting the company’s valuation between 1.1 billion euros and 1.3 billion euros.

The company started procedures to list on the Bourse earlier this month, after several false starts in the past.

The group was planning an IPO last year, but it was postponed due to the pandemic and consequent change in market conditions. Before that, listing plans were shelved given the poor economic climate in 2006, while in 2014, the firm presented a formal request to list on the Italian Stock Exchange, but in a rapid turnaround, it concluded its road show and released a statement the week before the official listing to withdraw the entire offering, pointing again to deteriorating market conditions.

Hints about the intention to proceed with this plan again resurfaced earlier this year, when the company signed an agreement with Italian bank Intesa Sanpaolo for a 30-million-euro sustainability-linked financing to support the achievement of its ESG targets.

Founded in 1972 by Ferrari and based in Agrate Brianza — a 40-minute drive from Milan — Intercos manufactures and supplies lipsticks, eye shadows, mascaras, foundations, powders, pencils, nail polishes and skin care products to around 680 clients globally. It employs about 5,200 people worldwide, distributed through 11 research centers, 15 production plants and 15 sales offices on three continents.

In 2019, the group reported revenues of 712.7 million euros, up 3 percent compared to the previous year. In particular, makeup accounted for 66 percent of revenues, hair and body products for 20 percent and skin care for the remaining 14 percent.