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Family business roundup: Mixed feelings over initial public offerings

Initial public offerings have taken centre stage, with family-controlled Coty reportedly planning to delay its IPO in New York, while the Al Habtoor Group is hoping to list next year.

Initial public offerings have taken centre stage, with family-controlled Coty reportedly planning to delay its IPO in New York, while the Al Habtoor Group is hoping to list next year.

According to media reports, fragrance business Coty, which is controlled by the German Reimann family through the holding company Joh A Benckiser, will postpone its planned $700 million (€544 million) listing until next year.

It comes amid a sluggish IPO market and just weeks after Michele Scannavini, a Coty executive, was named chief executive.

When contacted, the company, best known for its celebrity perfumes, said it had no comment to make at this time.

In contrast, family-owned Dubai conglomerate Al Habtoor Group said it was considering an IPO next year amid strengthening of the United Arab Emirates’ position in capital markets and “increased inflows from the eurozone”.

According to Reuters, the business is hoping to raise up to $1.6 billion by listing 25% of the business on Nasdaq Dubai bourse in 2013.

Earlier this month, the chairman of the group, family member Khalaf Al Habtoor, met with the chief executive of Dubai International Financial Centre Authority Jeff Singer and Hamed Ali, acting chief executive of Nasdaq Dubai.

“The meeting is an encouraging sign that Nasdaq Dubai and the Dubai International Financial Centre acknowledge the importance of family businesses in the UAE. We are the foundation for the future,” he said in a statement.

The region is moving in the right direction in terms of corporate governance, he added. 

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