Coty Inc Cancels Brazil IPO Plans

Coty Inc has revealed that it will be withdrawing its Brazilian unit’s plans to go public due to adverse financial market conditions in the largest economy in the South American continent.

“In light of the current economic volatility and adverse financial market conditions in Brazil, we have decided to withdraw from the IPO registration application process for the time being,” said Laurent Mercier, Coty’s chief financial officer, on a call with analysts.

Coty originally announced its plans to list the Brazil unit in August 2021 publicly. The move was a planned effort to pay down debt and expand the business with any proceeds it received.

In January, a poll revealed that due to high inflation and unemployment rates, the likelihood of the Brazilian economy heading into a recession is significantly high this year as the country continues to experience increasing interest rates. The country is also heading into an upcoming presidential election this October.

Mercier noted during the call that the company would continue to monitor market conditions and pursue an initial public offering at a later date.

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Originally published at https://retailbum.com on February 10, 2022.