Luxury perfume company Coty scents $1bn in New York listing

COTY, the New York-based perfume maker, is set to raise $1bn (£664m) in a US flotation.

The firm, which was founded in Paris in 1904, makes fragrances for stars including Katy Perry and Beyonce. The June listing will value the company at $6.7bn, and comes a year after talks over a takeover of US giant Avon Cosmetics broke down.

Rather than handing the company the proceeds of the deal, the share sale will see cash given to shareholders including JAB Holdings – the vehicle of German billionaires the Reimanns – Berkshire Partners and Rhone Capital. Bank of America Merrill Lynch, JP Morgan, Morgan Stanley, Barclays, Deutsche Bank and Wells Fargo are handling the bookrunning.

Coty decided to go public after dropping a $10.7bn bid for Avon in May last year, although the process was delayed after Michele Scannavini replaced long-serving chief executive Bernd Beetz.

The company is best known for its high-end collaborations with celebrities and designers, although it also makes cheaper toiletries for firms including Adidas.