Neither Beyonce nor Heidi Klum could save Coty’s (COTY) IPO.
The women’s perfume maker held one of the largest initial public offerings ever by a consumer-products company, raising $1 billion. So far, the stock isn’t faring so well.
Coty shares debuted at $17.50 today, in the middle of their expected range. Midway through their first trading day, shares have fallen 1.5%, dipping below $17 at one point this morning. Given the smash early returns of several recent IPOs, that’s surely not the debut Coty executives were hoping for.
Based in New York but founded in Paris in 1904, Coty is the rare company to go public more than a century after it was established. Its extensive line of well-known products includes Calvin Klein perfume, Sally Hansen nail polish and Adidas shower gel. Coty’s high profile – Beyonce and Heidi Klum are among its celebrity promoters – likely fueled some of the pre-IPO hype, allowing the company to raise $1 billion – just shy of the $1.13 billion Carolina Group in its 2002 debut, a record for consumer-products companies.
Coty is the fifth U.S. IPO this month. That comes on the heels of the busiest May in six years, when 30 companies went public.
Coty sold 57.1 million shares at an offering price of $17.50 per share, giving it an enterprise value of roughly $8.6 billion.
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