Coty Files Plans For $700 Million IPO

Coty Inc. filed plans for an estimated initial public offering of $700 million in common stock by the perfume maker's stockholders.

Coty's IPO comes about a month after the fragrance maker selected Bank of America Merrill Lynch and J.P. Morgan Chase & Co. as underwriters. The company has considered several strategic options in the past year and recently dropped a $10.7 billion attempt to acquire larger rival Avon Products Inc. (AVP). The Wall Street Journal first reported in April the company was considering an IPO as an alternative to the Avon deal.

Selling stockholders are selling all of the Class A common stock being sold in the offering, and Coty won't receive any proceeds IPO.

Coty is owned by Joh. A. Benckiser, the investment vehicle of Germany's wealthy Reimann family. Benckiser also owns Labelux GmbH, a holding company for luxury goods including Jimmy Choo shoes, and it has a large stake in Reckitt Benckiser Group PLC, a household products powerhouse that makes Lysol, Mucinex, Woolite, Clearasil and French's mustard, among other brands.

Coty makes fragrances under celebrity names including Jennifer Lopez and David Beckham, and designer labels such as Calvin Klein. In 2010, it acquired nail-polish maker OPI Products and skin-care brand Philosophy.

In 2011, the company reported a profit of $61.7 million, or 18 cents a share. The company saw revenue $4.09 billion that year, up 17% from 2010.

Coty expects to list its shares on the Nasdaq Global Select Market or the New York Stock Exchange using the symbol COTY.

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