Perfume maker to the stars such as Heidi Klum and Beyonce, Coty Inc is up for sale at a 25% discount for its initial public offer. The discounted valuation is hoped to entice investors to buy in to the company despite the retention by the billionaire Reimann family of the controlling stake in the firm.
The owners of Coty is asking for US$1.06 billion for the IPO to be held today. This was confirmed by Bloomberg through a review of the filings as well as data obtained. The company is controlled throuigh Joh A Benckiser, the investment arm of the Reimann family and it had announced that it would be creating a share that would allow for ten votes per share compared to a one vote share for its IPO investors. Through this valuation, the firm can still retain 85% voting shares even after a reduction of its shareholdings.
Clearly, the system would have IPO buyers with lowered influence but the redounding benefit is if Coty succeeds in its expansion plans into developing countries and it wins over consumers from known brands such as Avon and Estee Lauder, a windfall of resources would result.
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