October 01 2020 Companies

Natura & Co seeks capitalization in global offer of R $ 6 billion


With the third public sale of papers, Natura & Co will take its boldest step in the capital market. The intention is to raise more than 6 billion reais or more than 1 billion dollars, according to Revista Exame, from its long-awaited listing on B3, at the end of this month.

Close to its highest value ever achieved at B3, around R $ 65 billion, Natura & Co should use the expected resources to optimize the capital structure, to accelerate growth over the next three years, the 2030 sustainability project, with emphasis on the “Carbono Zero” agenda, and for digitization and integration of Avon, in addition to investing in geographic expansion opportunities.

Natura & Co started the revitalization of the Brazilian capital market, with a posture of a sustainable company from the beginning. Since its initial public offering 16 years ago, almost 190 other companies have gone public on the stock exchange, now B3. The group brings together the brands The Body Shop, Aesop and Avon, in addition to Natura itself, with operations in more than 100 countries. It has already carried out two other public offerings - the IPO, in 2004, and another one, in 2009. Both were for the sale of shares by the shareholders, that is, secondary, and did not represent the entry of new money into the business.

According to the Wall Street Journal, potential candidates include the third largest airline in Brazil, Gol, the medium-sized bank Banco Santos, the home decor heavyweight Eliane and the country's leading logistics group, América Latina Logística , or ALL.

Morgan Stanley will be the lead coordinator of the offer and the bank union will also include Bank of America (Bofa), Bradesco BBI, Citigroup and Itaú BBA, informs WSJ.
In another 15 years of trading, Natura Cosméticos became Natura & Co after entering the hall of the giants in the hygiene and beauty sector with the purchase of the centenary Avon, through an operation involving stock exchange and today has higher annual net revenue to 30 million reais.

Now there are a great challenge : Natura is a brand associated with the values of sustainability, social responsibility and fully adhering to the digital culture of the post-pandemic world. Avon is now a company that needs a complete update.

Natura & Co's traditional and long-term investors, according to Exame magazine found out, would be attentive to the advances in Avon's indicators, already convinced of the execution on the Natura brand.

 In the balance sheet for the second quarter of this year, the company positively surprised the market with a demonstration that there is possible growth not only in international projects, but within Brazil.  

Related News