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Private equity-owned German beauty retailer Douglas has announced plans to list in Frankfurt, raising hopes for a rebound in Europe’s moribund market for initial public offerings.
The retailer, which operates more than 1,800 stores in over 20 European countries and is majority-owned by private equity group CVC, said on Monday that it was aiming to raise €1.1bn.
People familiar with the group’s plans said Douglas was seeking a valuation of about €6bn, which would be Frankfurt’s largest IPO since Porsche’s blockbuster listing in 2022.
Douglas intends to sell €800mn of new shares to outside investors while CVC and other existing also plan to inject €300mn into the company as part of the IPO.
Higher interest rates have depressed Europe’s IPO market, which has long been in the shadow of the much bigger US market. Douglas, which was taken private a decade ago and has since undergone several restructurings, said it was aiming to list in the first quarter.
Chief executive Sander van der Laan said an IPO was the “logical next step for us to leverage our full potential” of a chain that has enjoyed significant growth in online sales. Van der Laan has promised to raise sales by a quarter to €5bn by 2026 and is confident the group can outperform the wider European beauty market.
The move by Douglas follows on the heels of German defence contractor Renk, which listed last month after delaying plans last year. Renk shares have gained nearly 50 per cent since the IPO.
Potential listings from private equity-backed companies are expected to be a major driver of IPOs this year, as the buyout industry faces pressure to deliver returns to its own investors.
Douglas said it wanted to use the IPO proceeds to its leverage. The €300mn of interest payments it makes each year are a drag on its profitability.
