(Bloomberg) -- Spanish beauty and fragrance group Puig Brands SA is planning a public listing, testing a choppy Madrid market amid broader revival in Europe’s initial public offerings this year.

Puig aims to raise €1.25 billion ($1.35 billion) in a primary share sale while shareholders look for more than €1.25 billion in a secondary offering, it said on Monday. Companies have announced $5.8 billion of IPOs on European exchanges in 2024, according to data compiled by Bloomberg, more than double the amount in the same period a year ago.

The deal is set to add much-needed fuel to Spain’s IPO engine, with the market struggling to attract sizable listings since Acciona SA’s clean-energy unit went public in 2021. It comes after car and auto-parts logistics company Bergé y Compañía scrapped plans to list its Astara unit last week amid lukewarm investor interest. 

“Puig’s IPO could be considered the restart of activity in Spanish equities, much forgotten by the capital markets,” said Luis Buceta, chief investment officer at Creand Wealth Management in Madrid.

Lured by record-hitting European stock markets, companies worth a combined $40 billion — including Italian sneaker maker Golden Goose and private equity group CVC Capital Partners — are dusting off their listing plans in the hopes of tapping the markets as soon as the second quarter.

Still, Berge’s IPO withdrawal as well as the weak performance by newly listed German perfume retailer Douglas AG is keeping investors nervous.

Acquisitive Conglomerate

Puig traces its history to 1914, when it was founded by Antonio Puig as a perfume company. His descendant Marc Puig has led the company since 2004. The acquisitive conglomerate owns a range of premium brands including Carolina Herrera, Charlotte Tilbury, Dries Van Noten, Rabanne, Jean Paul Gaultier, as well as Dr. Barbara Sturm, its most recent acquisition. 

Proceeds from the issue will be used for general corporate purposes such as refinancing recent acquisitions and “financing any future strategic investments and capital expenditures,” the company said.

Gonzalo Lardies, a senior equities fund manager at Andbank, said Puig’s “business dynamics of the last two years and the fact that it is a global company” signal the time is right for its IPO.

Puig will be listing Class B shares, which grant 1 vote, while the family will retain unlisted Class A shares, which grant five votes. 

The joint global coordinators and bookrunners on the deal are Goldman Sachs Group Inc and JPMorgan Chase & Co. Bank of America Corp, Banco Santander SA, BNP Paribas SA and Caixabank SA are joint bookrunners, while co-lead managers are Banco Bilbao Vizcaya Argentaria SA and Banco de Sabadell SA. 

--With assistance from Manuel Baigorri, Macarena Muñoz and Phil Serafino.

(Updates throughout with new comments, context and issue details)

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