The SILK Laser Australia Limited (ASX: SLA) share price has hit the ASX boards running this morning following the successful completion of its initial public offering (IPO).
The laser, skin care, and cosmetic injections company’s shares are currently changing hands for $3.65.
This is 6% higher than the SILK Laser listing price of $3.45 per share.
The SILK Laser IPO.
SILK Laser has landed on the Australian share market on Tuesday after raising $83.5 million at $3.45 per share through its IPO. This gave the company a market capitalisation of $162.5 million.
According to its prospectus, some of the proceeds from the IPO will be used to execute SILK’s growth strategy. This strategy includes organic growth within existing clinics, expansion of its network, and clinic acquisitions where compelling opportunities present themselves.
Management also intends to continue to invest in business intelligence and dashboard tools, which have been a key driver of strong clinic performance.
What is SILK Laser?
SILK Laser was founded in 2009 and has become one of Australia’s largest specialist clinic networks.
Through its 53 clinics in metropolitan and regional Australia, the company offers a range of non‑surgical aesthetic products and services.
Its five core offerings comprise laser hair removal, cosmetic injectables, skin treatments, body contouring and fat reduction services, and Owned Brand skincare products.
Financials and trading update.
In FY 2020 the company achieved revenue of $32.3 million and net profit of $796,000.
Looking ahead, the company’s prospectus forecast is for revenue of $53.5 million and net profit after tax of $5.4 million in FY 2021.
However, as of the end of the first five months of FY 2021, SILK Laser is on track to beat its forecasts.
Management revealed that unaudited network cash sales remain well ahead of last year and are up 63% on the prior corresponding period to $38 million.
An important milestone.
SILK Laser’s Managing Director and Co-Founder, Martin Perelman, believes this IPO is an important milestone for the company.
He commented: “We’re excited to reach this next step in SILK’s journey and I would like to take the opportunity to thank all the SILK staff, our SILK franchisee partners and the board for their hard work in getting us to this point.”
“For SILK, the IPO is another important milestone as we continue to execute our growth objectives, including the expansion of our clinic network across Australia. Our clinics have continued to perform strongly throughout the year, and I am confident that with the funds raised we can continue to benefit from this momentum and further accelerate our growth,” Mr Perelman added.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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