Advent International-backed Olaplex, the cult haircare model that pioneered the bond-building market, made its debut on the general public market, beating expectations and elevating over $1.55 billion.
WHO: Olaplex was based in 2014 by magnificence trade veterans Dean and Darcy Christal, who commercialized a revolutionary, patented expertise that works on a molecular stage to guard and restore hair from injury. Olaplex, thought-about a pioneer in the bond-building class grew to become a worldwide sensation, promoting product via each the skilled and shopper channels. Private fairness agency Advent International acquired the enterprise in 2019.
WHY: The firm will give attention to rising its present enterprise and discover adjoining classes equivalent to pores and skin and nail care.
IN THEIR OWN WORDS: “The hair care and shopper enterprise could be very a lot resonating with traders,” Olaplex Chief Executive Officer JuE Wong mentioned in an interview. “Hair care is a motion.”
“Hair care as a magnificence class has all the time been a bit little bit of a stepchild,” Wong mentioned. “Through the pandemic, it actually had a possibility to shine. Today, we see hair care nearly like skincare with the ritualization of haircare. Women are keen to pay a premium.”
Olaplex”s shares are buying and selling on the Nasdaq Global Select Market beneath the image OLPX.
Shares offered for $21 in the IPO and rose as a lot as 26% in the primary day of buying and selling (September 30), closing at $24.50, giving the corporate a market worth of $16 billion and elevating $1.55 billion.
The firm didn’t provide any shares in the IPO and won’t obtain any proceeds from it.
Accounting for worker inventory choices, Olaplex has a totally diluted worth of greater than $14 billion.
Advent and different Olaplex traders offered 73.7 million shares after advertising and marketing 67 million for $17 to $19.
Mousse Partners, the funding agency for the household behind Chanel, offered shares price $95.2 million, conserving an about $800 million stake, primarily based on the providing worth.
According to Olaplex’s filings with the U.S. Securities and Exchange Commission, Advent International will management about 80% of the shareholder voting energy after the itemizing, whereas Mousse Partners will management about 6%.
Goldman Sachs Group Inc., JPMorgan Chase & Co., Morgan Stanley, and Barclays Plc led the providing.
The firm listed gross sales of $270 million in the six months ended June 2021, up from $100 million throughout the identical interval in 2020. It earned $95 million in the interval, in comparison with losses of $22 million a yr in the past.
International distribution accounts for 44% of its enterprise.