German perfume retailer Douglas is poised to announce its plans for an initial public offering (IPO) in the coming days, as reported by Reuters, citing two sources familiar with the matter. This move poses a significant test for Europe’s equity markets.
The group, majority-owned by CVC Capital Partners, is preparing to issue an intention to float on the Frankfurt bourse as soon as this week if markets hold up, according to sources who spoke on condition of anonymity.
Nonetheless, there is a possibility that the announcement could be postponed to the following Monday, as no definitive decision has been reached, one of the sources added.
A variety of macroeconomic data is anticipated this week, with U.S. inflation figures scheduled for Thursday, which could potentially impact market movements.
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Investment banks will begin to formally canvass investors following the intention to float announcement to define a valuation range for the share sale.
Reuters previously reported that Douglas aimed to go public by the end of March.
Spokespeople for the IPO declined to comment.
An announcement would come amid improving sentiment towards new stock listings after the successful IPOs of German defence contractor Renk and Athens International Airport earlier this month.
Growing consensus that interest rates have topped out has created a brighter backdrop for equity markets, while the CBOE Volatility Index – known as Wall Street’s fear gauge – remains at levels that bankers see as conducive for IPOs.
Besides Douglas, there are least four other major IPOs pencilled in for the first half of the year, sources have told Reuters.
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