Adds details on IPO, background
Sept 30 (Reuters) – Shares of Olaplex Holdings Inc OLPX.O jumped more than 19% in their stock market debut on Thursday, giving the hair products maker a market capitalization of $16.2 billion.
Shares of the company, owned by private equity firm Advent International, opened at $25 compared with their initial public offering (IPO) price of $21 per share.
Certain existing shareholders of Olaplex sold 73.7 million shares in the company’s upsized IPO earlier in the day to raise $1.55 billion. The offering was priced above an earlier projected price range of $17 to $19 per share.
The company did not offer any shares in the IPO and will not be receiving any proceeds from it.
Olaplex’s products, which include shampoos, conditioners, treatments and oils, are popularly used for treating damaged hair. They are priced at around $28 each and the bundles run up to as much as $196.
The company, which was founded in 2014 in a garage in California, now sells its products in over 100 countries. LVMH-owned beauty chain Sephora LVMH.PA, professional beauty products distributors SalonCentric OREP.PA and Sally Beauty Holding Inc’s SBH.N Beauty Systems Group are among Olaplex’s biggest customers.
Advent, which acquired Olaplex in 2019, owns about 79.6% of the combined voting power in the company after the offering through investment funds associated with it.
Goldman Sachs & Co, J.P. Morgan, Morgan Stanley and Barclays were the lead underwriters for the IPO.
(Reporting by Sohini Podder and Niket Nishant in Bengaluru; Additional reporting by Praveen Paramasivam; Editing by Amy Caren Daniel)
((Sohini.Podder@thomsonreuters.com;))
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