(Bloomberg) -- CVC Capital Partners Plc is seeking a valuation of $2 billion to $3 billion in an initial public offering of personal-care business FineToday Holdings Co., people familiar with the matter said, as the private equity firm looks to capitalize on the strong performance of Japan’s stock market.

CVC has been speaking with banks to help prepare for a potential share sale that could take place in the coming quarters, the people said, asking not to be identified because the matter is private. CVC owns a majority stake in FineToday, and Japanese skincare company Shiseido Co. owns about 20%. 

While an IPO is the preferred option, other funds and industry players have expressed preliminary interest in acquiring the business, the people said.

Shiseido confirmed in a statement Friday that FineToday is preparing for a listing in Tokyo, but it said details such as the timing haven’t been finalized. There is a possibility that FineToday decides against an IPO, it said. 

A representative for CVC declined to comment. 

CVC bought the business from Shiseido three years ago in a deal worth about $1.5 billion. As part of the transaction, CVC acquired brands including Tsubaki hair-care products and Senka face wash.

Japan’s benchmark Nikkei-225 index has climbed about 14% this year and hit a record high in March. 

--With assistance from Takako Taniguchi.

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