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Michele Scannavini, (C) CEO of Coty Inc., and company representatives ring the opening bell at the New York Stock Exchange to celebrate the company's IPO, June 13, 2013. Shares of perfume and beauty products seller Coty Inc fell in their market debut on Thursday, taking the gloss off the third-largest U.S. IPO this year.
Michele Scannavini, (C) CEO of Coty Inc., and company representatives ring the opening bell at the New York Stock Exchange to celebrate the company's IPO, June 13, 2013. Shares of perfume and beauty products seller Coty Inc fell in their market debut on Thursday, taking the gloss off the third-largest U.S. IPO this year.
(Brendan McDermid/Reuters)

FINANCIAL TIMES

Post-IPO, Coty investors smelling like roses

Lex is a premium daily commentary service from the Financial Times. It helps readers make better investment decisions by highlighting key emerging risks and opportunities.

Coty, along with fragrances and cosmetics, also makes toiletries, including deodorant. Good thing. The investors who sold shares in the company’s initial public offering – none of the proceeds will go to the company – must have been sweating profusely in the weeks leading up to the pricing on Wednesday night. The recent stock market rally has rolled over since May, after sending the shares of Coty competitors Estee Lauder and L’Oréal up by a fifth and a third, respectively, in just six months. If the euphoria had passed before Coty got to market, it would have been hard to mask the sour smell of missed opportunity.