Revlon, which postponed an initial public offering last July due to a weak market, is moving toward another public issue this spring, according to industry insiders.
Well-placed sources said last week that the cosmetics giant is looking to file another initial public offering for the "New Revlon" around March of this year.
While Revlon officials refused to confirm or deny the reports, an executive at Revlon parent, MacAndrew & Forbes Holding, said the company is "considering reentering the public market" in 1993.
"The market for IPO's has picked up considerably in recent weeks," said James Conroy, senior vp/special counsel for M&FH. "We're optimistic."
Still to be determined is how an IPO will affect Revlon's roughly $150-million worldwide ad budget. While some sources said recently that the new Revlon might consider divesting its in-house U.S. agency, Tarlow Advertising/N.Y., others said that the new Revlon is far more likely to retain the in-house operation which has consistently produced high-quality cosmetics advertising. "It's a money-maker for Revlon," said one source.
As Revlon moves toward another IPO, sources said that Revlon International president Paul Block still plans to stage an international agency review to consolidate the company's $60-70 million in international billings at a single worldwide agency. The review is expected to kick off in early 1993.
Copyright Adweek L.P. (1993)