Bankinter: Trading starts this Friday at 12.00h. The placement price has been €24.5/share. The group, valued at €14,000 M, has placed 32% of its capital among qualified investors.
Preliminarily, based on available information, we estimate that the exit price represents a discount of 15.6% versus the sector average (L’Oreal, Estee Lauder, Shiseido, Coty, Interparfums) in terms of EV/EBITDA 2023 and -34.4% versus the sector leader, L’Oreal. We believe that a reasonable discount could be 20% to L’Oreal or a 3% premium to the sector, which would imply trading in the €30/€31 range. Although this IPO seems attractive considering the placement price (€24.5/share), whether it remains so or not will depend on the likely rise that the stock will experience today on its first day of trading (more specifically, from 12.00h).
Other details: With recognised brands in the premium segment (Charlotte Tilbury, Nina Ricci, Carolina Herrera, etc.) and diversification by products and regions, growth and margins in recent years are high. Sales have grown 29% in the period 2021/2023 (average annual growth) and EBITDA up 45%. Gross Margin amounted to 74.7% and M. EBIT to 16.1% in 2023, compared to industry averages of 69.7% and 10.7% respectively.
Conclusion: Preliminarily and with the information available today on the company, we consider it reasonable to take positions below the €30/€31 range, equivalent to an EV/EBITDA 2023 ratio of 19.5x. As more information is made public we will be able to further refine this range.
Note: Bankinter has not been an underwriter in this transaction.
