Coty Is Exploring Double Listing — in Paris and New York
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PARIS — Coty Inc. is exploring a dual listing, in Paris and New York, it said Friday.
The beauty-maker, which is eying the Paris Stock Exchange, is already listed on the New York Stock Exchange.
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Coty also said Friday it has extended its long-term partnership with Sue Nabi, Coty chief executive officer since Sept. 1, 2020. Her renewed compensation agreement is founded on an equity program that runs through 2030.
Coty’s board of directors has authorized the company’s management to explore a listing in Paris. Should it become dually listed, it would “further [strengthen] Coty’s presence in Europe and [provide] an additional vehicle to reach untapped investors in the market,” the company said in a statement. “The structure aligns with Coty’s 100-plus-year heritage in France and its substantial business footprint in Europe.”
“Paris is the historic home of beauty, and the industry still holds a special attraction for investors there,” commented Coty chairman Peter Harf. “The board’s interest in exploring a potential listing on the Paris Stock Exchange has been made possible thanks to the progress Coty has made under Sue’s leadership.”
Nabi’s big bet has been to expand Coty beyond the company’s core competency of fragrance, which keeps developing, while delving deeper into skin care, particularly, and makeup. Under her tenure, beauty brands such as CoverGirl, Bourjois, Max Factor and Rimmel have returned to growth.
Also in her sights has been China, where Coty has noted the success of Gucci beauty, Burberry beauty and Lancaster.
The company underlined its market capitalization as quadrupled under Nabi.
“We have seen consistent growth over the last 10 quarters, in line with or ahead of market expectations, underpinned by targeted investment, disciplined cost controls and a clear debt reduction program,” Harf added. “The strength of this performance is testament to Sue’s reputation as one of the beauty industry’s most innovative and talented figures, and the leadership team she has built at Coty.”
Nabi said the company is “committed to driving sustainable innovation across fragrance, color cosmetics and skin care as [it rises] to meet the consumer needs of the future, while simultaneously campaigning to change outdated definitions of beauty through the #undefinebeauty campaign.”
Regarding her renewed compensation agreement, Coty said it “includes a significant portion of performance-related shares alongside a performance-related bonus, further aligning all stakeholders’ interest.”
Coty did reveal give details of Nabi’s compensation, but in fiscal-year 2021, she was beauty’s highest-paid CEO by far, largely thanks to her stock-based compensation, which was awarded as part of her one-time sign-on package.
At the time, the market smiled on her turnaround efforts at the beauty group, sending Coty’s share price soaring and earning her $283.8 million in the year to June 30, 2021.
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