(Bloomberg) -- Perfume retailer Douglas is looking to raise as much as €1.1 billion ($1.2 billion) through a listing in Frankfurt, as private equity owner CVC Capital Partners bets on a rebound in European initial public offerings.

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Douglas plans to raise about €800 million through selling new shares in the IPO and another €300 million via equity injection from existing shareholders, according to a statement on Monday. CVC doesn’t plan to sell shares in the offering and will continue to hold an indirect majority interest in Douglas, which will use the proceeds to reduce its debt.

The private equity firm is seeking a valuation of more than €7 billion for Douglas, Bloomberg News reported in August.

IPOs are slowly picking up in Europe after a nearly two-year hiatus as calmer stock markets, better post-listing performance and improved investor appetite for new offerings brings issuers back to the market.

To bolster chances of a successful listing, CVC is contemplating guaranteeing to buy new shares if the company is unable to sell them to external investors, Bloomberg reported last month, providing a so-called backstop that could be financed with a loan backed by CVC’s Douglas shares.

CVC acquired the business from Advent International and the founding Kreke family in 2015 for about €2.8 billion. With roots dating back to 1821, Douglas operates more than 1,800 stores across Europe, according to its website. It has been investing in both its retail stores and online offering as part of its “Let it Bloom” growth plan.

Citigroup Inc., Deutsche Bank AG, Goldman Sachs Group Inc., UniCredit SpA and UBS Group AG are working on the offering.



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