Shares of Coty (COTY) - Get Coty Inc. Class A Report dropped on Wednesday after the New York beauty-products specialist unveiled the pricing of a secondary offering of more than 50 million Class A shares.
The shares are priced at $8.53 each by KKR Rainbow Aggregator. When the offering closes, KKR Rainbow will retain 568,367 shares of Coty's Series B convertible stock.
Coty is not selling any Class A shares in the proposed offering, which is being underwritten by Morgan Stanley.
Shares of Coty at last check dropped 10% to $8.31.
In August, Coty missed Wall Street's fourth-quarter earnings expectations, but beat revenue estimates due in part to surging sales in the U.S. and China.
Coty reported a net loss of $210.2 million, or 29 cents a share, compared with a loss of $722.8 million, or 91 cents a share, a year earlier. The adjusted loss came to 9 cents a share, compared with the FactSet consensus for a loss of 5 cents a share.
Revenue totaled $1.06 billion, up nearly 90% from a year earlier and ahead of the FactSet consensus of $1.01 billion.
The revenue results lapped the peak of Covid-19 impact in the prior year, the company said, even as virus-related restrictions continued in many markets.
Coty also said that it was pursuing a partial initial public offering of its Brazil business.
Earlier on Thursday, Coty said it completed its first filing at CVM - the Securities Commission that regulates capital markets - in Brazil to begin the process.