04.26.10
If there’s any doubt that there’s money floating around the beauty industry again, L’Occitane International SA’s announcement that it will raise as much as 5.49 billion Hong Kong dollars, or $707.2 million, through an initial public offering should put an end to those doubts.
The L’Occitane IPO includes 364.1 million shares, or about 25% of the company, to be priced from 12.88 Hong Kong dollars to 15.08 Hong Kong dollars, or $1.66 to $1.94, a share. The subscription closes April 29m and the final price will be announced on or about April 30 and the shares are expected to commence trading on the Hong Kong stock exchange on May 7.
According to the company, this will be the first time a French company will have listed on Hong Kong’s bourse.
“We grew L’Occitane in Asia out of Hong Kong so it makes sense to go where our customers are,” explained Reinold Geiger, chairman and chief executive officer, during a video press conference from New York.
The company estimates net proceeds from the offering to total $315.6 million, after expenses, if an offer price is assumed of 13.98 Hong Kong dollars, or $1.80, a share, the midpoint of the stated range.
Managing director André Hoffmann said half the shares on offer are new and half are from the controlling shareholder parent group L’Occitane Groupe SA, in which Geiger holds a 51.9% stake.
In 2001, French skin care brand Clarins took a 22% minority stake in the company but in 2007 sold half of it back to the parent. Clarins currently holds and, immediately following the completion of the offering, is expected to hold 10.1% of L’Occitane Groupe SA.
Hoffmann cited strong sales growth in the Asia-Pacific region as the reason behind listing in Hong Kong. For the nine-month period ended in December, the company posted net income $94.5 million at average exchange for the period, on sales of $658.4 million. Japan, Hong Kong and Taiwan accounted for 35.2% of sales.
Approximately 65% of the capital raised from the IPO will be used to expand L’Occitane and Melvita, a French natural skin care brand acquired in 2008. There are 753 L’Occitane boutiques in 27 countries, of which 270 are located in Asia-Pacific. Additional units, similar in number, are operated by outside parties. The group opened its first Melvita store outside of France in December at IFC Mall in Hong Kong and plans to enter the U.S. market with the brand this year.
The L’Occitane IPO includes 364.1 million shares, or about 25% of the company, to be priced from 12.88 Hong Kong dollars to 15.08 Hong Kong dollars, or $1.66 to $1.94, a share. The subscription closes April 29m and the final price will be announced on or about April 30 and the shares are expected to commence trading on the Hong Kong stock exchange on May 7.
According to the company, this will be the first time a French company will have listed on Hong Kong’s bourse.
“We grew L’Occitane in Asia out of Hong Kong so it makes sense to go where our customers are,” explained Reinold Geiger, chairman and chief executive officer, during a video press conference from New York.
The company estimates net proceeds from the offering to total $315.6 million, after expenses, if an offer price is assumed of 13.98 Hong Kong dollars, or $1.80, a share, the midpoint of the stated range.
Managing director André Hoffmann said half the shares on offer are new and half are from the controlling shareholder parent group L’Occitane Groupe SA, in which Geiger holds a 51.9% stake.
In 2001, French skin care brand Clarins took a 22% minority stake in the company but in 2007 sold half of it back to the parent. Clarins currently holds and, immediately following the completion of the offering, is expected to hold 10.1% of L’Occitane Groupe SA.
Hoffmann cited strong sales growth in the Asia-Pacific region as the reason behind listing in Hong Kong. For the nine-month period ended in December, the company posted net income $94.5 million at average exchange for the period, on sales of $658.4 million. Japan, Hong Kong and Taiwan accounted for 35.2% of sales.
Approximately 65% of the capital raised from the IPO will be used to expand L’Occitane and Melvita, a French natural skin care brand acquired in 2008. There are 753 L’Occitane boutiques in 27 countries, of which 270 are located in Asia-Pacific. Additional units, similar in number, are operated by outside parties. The group opened its first Melvita store outside of France in December at IFC Mall in Hong Kong and plans to enter the U.S. market with the brand this year.