(Bloomberg) -- Skincare company Galderma Group AG priced its 2.3 billion Swiss-franc ($2.6 billion) initial public offering at the top of the marketed range giving much needed confidence to a slowly rebounding market for European listings.

The EQT AB-backed company priced its IPO shares at 53 francs each, compared with a marketing range of 49 to 53 francs apiece. The stock is set to start trading Friday.

This strong appetite is being seen as a sign investors are returning to the European IPO market after shunning it for the past 18 months, mainly due to weak returns from new listings. German perfume retailer Douglas, which also makes its debut this week, priced its sale at the bottom end of its range to entice buyers. 

Galderma’s offering was well received by investors, who appreciated the growth in both its sales and profits, Chief Executive Officer Flemming Ørnskov said in a phone interview following the launch of the share sale earlier this month. 

The company raised nearly 2 billion francs by selling 37.2 million new shares. The rest came from the sale of exercising shares, including an over allotment option. The IPO values Galderma at 12.6 billion francs.

The pricing is a success for EQT, which has been exploring an IPO of the business since 2021, with volatile markets delaying listing plans. The buyout firm led a consortium that acquired Galderma for 10.2 billion Swiss francs in 2019, and it will remain a large holder.  

Galderma was founded in 1981 as a joint venture between L’Oreal SA and Nestle. The company is best known for skincare products, particularly its popular Cetaphil range, as well as Alastin. The larger chunk of its revenue comes from so-called injectables - a fast-growing segment encompassing treatments such as Botox and fillers, with increasingly younger women flocking to these “preventative anti-aging” solutions.

--With assistance from Paula Doenecke.

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