Advent’s Olaplex Upsizes IPO, Prices It Above Range to Raise $1.6 Billion
(Bloomberg) -- Olaplex Holdings Inc., backed by private equity firm Advent International, upsized its initial public offering and priced the shares above a marketed range to raise $1.55 billion.
Advent and other Olaplex investors sold 73.7 million shares for $21 each on Wednesday, according to a statement confirming an earlier report by Bloomberg News. The hair-products maker had marketed 67 million shares for $17 to $19.
The IPO gives Olaplex a market value of more than $13.6 billion based on the outstanding shares listed in its filings with the U.S. Securities and Exchange Commission. Accounting for employee stock options, the Santa Barbara, California-based company has a fully diluted value of more than $14 billion.
Advent was expected to control almost 80% of the shareholder voting power in the company after the listing, according to the filings. Mousse Partners will control about 6%.
Olaplex’s sales climbed sharply during the first half of 2021 compared with a year earlier. Olaplex swung to a profit of $95 million on net sales of $270 million for the first six months of the year, compared with a net loss of $22 million on about $100 million in sales during the same period in 2020.
Founded in 2014, the shampoo and conditioner maker was bought by Advent in 2019, according to a statement at the time that didn’t disclose deal terms. The company named JuE Wong as chief executive officer, according to a statement in January 2020. Wong had been CEO of Moroccanoil, the skin and hair-care brand.
The offering is being led by Goldman Sachs Group Inc., JPMorgan Chase & Co., Morgan Stanley and Barclays Plc. Olaplex’s shares are expected to begin trading Thursday on the Nasdaq Global Select Market under the symbol OLPX.
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