What's going on?

US beauty company Coty said it�s planning to sell 33 million new shares, laying the foundation for a dual stock listing in Paris.

What does this mean?

The New York-listed cosmetics firm is hoping that a presence on the French exchange will improve its looks among beauty-focused investors. At the current price, the share sale would raise more than $370 million for the maker of CoverGirl, Rimmel, and Kylie Cosmetics. And that�s money the company says it�d use to pay down debt and expand the business. The firm�s been dealing with some unsightly issues: mostly heavy debt and some management churn. But things have become better-looking under the current CEO,� hired in 2020 to makeover the business.

Why should I care?

For markets: It�s always had Paris.
Coty was founded in 1904 in Paris, so the dual listing would take the beauty brand back to its (perfectly dyed) roots. But there�s much more to this move than just homesickness. See, most of the world�s biggest luxury goods and beauty companies � LVMH, L�Or�al, Herm�s, and Kering � are listed in the French capital. That means Europe has a wealth of analysts and investors with in-depth knowledge and appreciation of the industry. So, for Coty, the move means being able to tap into pools of investors with high sector expertise, which could lead to a higher valuation.

The bigger picture: Beauty is looking good.
Coty�s share sale comes at a time when the industry is seeing a post-pandemic boom as customers splurge on smaller luxuries like fragrances and cosmetics. And the CEO of L�Or�al � the world�s biggest beauty company � says the change is more than skin deep. With the rise of the middle class around the world, an increased appetite for pricier premium products, and a customer base that�s stretching beyond women and young people, he�s predicting that the beauty market will grow to $427 billion by 2030, from $288 billion today.