The Puig Group is about to go public

When a brand goes public, its power multiplies: opening up to external investors and market valuation may increase the risks (which can always be controlled) but greatly enhance financing and expansion power. And it's expansion that the Puig group seems to be considering, as its stock market listing appears imminent – so imminent that the most authoritative sources say that next Monday the owner of Dries Van Noten and Jean Paul Gaultier could be the fateful day of the IPO on the Madrid stock exchange. According to Reuters, current shareholders would like to raise between two and three billion euros in financing.

Behind every stock listing there's an expansion attempt – and it's almost natural that Puig has done it since its business model, as we wrote a few weeks ago, is extremely efficient in today's fashion landscape. As owner, shareholder, and especially specialized licensee in perfumery (it also produces clothing depending on the brands in its portfolio, but fragrances are the core of sales) the group has been rooted for decades in one of the most fundamental market categories of the fashion market, being the most widespread and common along with sunglasses. Raising capital between two and three billion could indeed encompass several potentials: from acquiring a new brand to acquiring additional licenses or even investing in the perfume supply chain to increase volume and production efficiency – either way, the heavyweight category of fashion is about to be enriched with a new name.