Olaplex IPO: How to invest in this hair care company

Highlights

  • Olaplex has revised the estimated price band of its IPO from US$14 – US$16 per share to US$17 – US$19 per share.
  • Olaplex is a US-based technology-driven beauty company and is one of the most trusted hair care brands in the US.
  • The company clocked a robust EBITDA growth of US$199.3 million in 2020, almost double that of US$100.5 million in 2019.

On Tuesday, Olaplex Holdings Inc. announced that it has revised the estimated price band of its upcoming Initial Public Offering (IPO) from US$14 – US$16 per share to US$17 – US$19 per share. The company has planned to issue 67 million shares, which would translate to somewhere around US$1.2 billion capital raising at the higher price range.

IPO

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The IPO is expected to be priced very soon, led by underwriters J.P. Morgan Chase, Goldman Sachs, Morgan Stanley and Barclays. It will be listed and traded on the Nasdaq under the symbol OLPX.

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What does the company do?

Olaplex is a US-based technology driven beauty company, having patent protected technologies that deliver a performance, which is expected from one of the most trusted hair care brands in the US. The professional product line-up of the company is being used by both hairstylists in salon and by consumers at their home.

Hair care products

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Coming to the financial performance, Olaplex recorded net sales of US$282.3 million in 2020, compared to US$148.2 million in 2019, representing a massive growth of 90%. However, dure to high interest expense, the net income decreased from US$60.9 million to US$39.3 million in the same period.    

Olaplex IPO How to invest in this hair care company

A robust EBITDA growth of 98% was witnessed, from US$100.5 million in 2019 to US$199.3 million in 2020, while adjusted EBITDA margins grew from 68% to 71% over the same year.

How to buy Olaplex shares

To invest in Olaplex shares, investors need to have a brokerage account with a registered brokerage house in the US. After opening an account, investors need to apply for the Olaplex IPO via their brokerage account and wait for the allotment date to be in the know of whether the shares have been allotted or not.

Generally, when an IPO gets oversubscribed, it gets difficult to secure the allotment of shares as demand from buyers outpaces the supply of shares in the IPO. If investors miss the allotment, they can always buy shares in the secondary market, once the shares get listed on the local bourse.

Bottom Line

The market’s enthusiasm regarding Olaplex IPO had been high so far but might fade a bit considering the revised price band on the upside. Also, investing in any IPO is a bit riskier; therefore, investors need to be cautious while making a bet on any IPO.  

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On Tuesday, Olaplex Holdings Inc. announced that it has revised the estimated price band of its upcoming Initial Public Offering (IPO) from US$14 – US$16 per share to US$17 – US$19 per share. The company has planned to issue 67 million shares, which would translate to somewhere around US$1.2 billion capital raising at the higher price range.

IPO

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