29th Jun 2021 10:05
(Alliance News) - Revolution Beauty Group Ltd on Tuesday said it is planning an initial public offering on London's junior AIM market next month, with Jupiter Asset Management and Chrysalis Investments Ltd as cornerstone investors.
Kent-based Revolution, founded in 2014, sells a range of makeup, skincare and haircare brands in 11,000 stores across the world and online. Retail partners include Boots, Superdrug and Boohoo Group PLC in the UK, and Target in the US.
The company said it is "one of the fastest innovators in the mass beauty market," thanks to its influencer and social media operations targeting the 16 to 35-year-old demographic.
By engaging with Instagram and TikTok followers, Revolution can identify trends, get feedback and bring new products to market in 16 weeks - a far shorter timescale than larger competitors, the company said.
That has enabled Revolution to expand rapidly, with a compound annual revenue growth rate up to the 2019 financial year of 99%. In the 14 months to February 28 this year, the company made revenue of GBP15.6 million and adjusted earnings before interest, tax, depreciation and amortisation of GBP13.1 million.
Revolution plans to continue growing through expanding direct-to-consumer sales, adding retail partners and creating new brands, including a brand for men due to launch in 2022.
Jupiter Asset Management has agreed to subscribe for GBP90 million shares in the IPO as cornerstone investor. Jupiter's FTSE 250-listed trust, Chrysalis Investments Ltd, said it will invest around GBP45 million of that total.
Chrysalis, which does not yet have a stake in Revolution and primarily invests in pre-IPO companies, said the beauty company has a "significant runway for growth".
The potential size and share price for the IPO were not disclosed. The offering will include new and existing shares.
Founder and Chief Executive Adam Minto said: "Our differentiated business model brings together both online and retail revenues, while our manufacturing and consumer feedback strategy enables us to bring new products to market quickly.
"This means that Revolution Beauty can quickly respond to the megatrends driving the global mass beauty industry."
By Ivan Edwards; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
BoohooChrysalis Inves