French perfume maker Coty buys time on flotation plans

Michael Bow
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COTY, the perfume maker behind the Calvin Klein and Marc Jacobs fragrance brands, is understood to have postponed plans to float in New York later this year.

The French company, which filed documents with American regulators at the end of June for an initial public offering, is reconsidering the float to give Michele Scannavini, who was appointed to lead the firm at the start of August, more time to establish a track record to be assessed by the market.

The firm is also said to be on the hunt for future acquisitions following its aborted attempt to buy Avon Products for $10.7bn (£6.66bn) in May, with Brazilian beauty firm Jequiti thought to be in its sights.

Coty yesterday said it did not comment on market rumours. Legal representatives working on the regulatory filing also declined to comment.

Scannavini last month replaced former chief executive Bernd Beetz, its chief executive for 11 years.

Analysts speculate that Scannavini will want to build a track record in charge of the firm before putting a formal prospectus for a float to the market.

“When you have a company going public with no track record, it’s harder to sell,” an analyst said.

The firm filed a preliminary prospectus with the SEC on 28 June for an IPO, appointing Bank of America Merrill Lynch, JP Morgan, Morgan Stanley, Barclays, Deutsche Bank and Wells Fargo as book runners.

The firm, established in 1904, is the brains behind some of the world’s top fragrance brands, including David Beckham, Beyonce Knowles, and Madonna.