Revolution Beauty’s IPO to offer ‘significant opportunities’ for global growth
The global mass beauty and personal-care company, which sells products that are primarily vegan (around 70%) and 100% cruelty free, said it will place 69.2 million new ordinary shares at a price of 160p, leaving the company with a market capitalization of £495 million.
On admission to AIM, it will have over 300 million sale shares which proceeds are expected to rise for shareholders and new shares are also expected to raise proceeds of £110.7m. The funds are expected to provide around £20m of cash immediately following its IPO.
Jupiter Asset Management has already entered a cornerstone investment deal with Revolution, agreeing to subscribe for £90m of the placing or just over 18% of the company.
Addressing shareholders, CEO and Founder of Revolution Beauty, Adam Minto, described the listing as “a significant milestone in the company’s development. He said a listing will provide it “with a solid platform to execute its exciting growth plans and take advantage of the significant opportunities for global expansion in a compelling growth market.”
The Group believes a London listing will provide the business with the permanent capital needed to support its long-term growth strategy and to enhance its profile and visibility.
In addition, an IPO will also provide it with the means to incentivise management and staff, strengthen its balance sheet, as well as to realise value for all institutional shareholders.
Since launching in 2014, Revolution has seen rapid growth with a reported CAGR of 99% from FY14 –FY19 and has generated revenues in the year to 31 December 2020 of £137.5m.
Revolution Beauty, which partners with large retail brands including Superdrug and Boots, generated £157.6 million in revenue in the fourteen months to 28 February 2021. The Group holds a retail footprint of around 11,000 doors in the UK, USA and internationally.
Since the Kent-based Company was founded back in 2014, by CEO, Minto and Executive Chairman, Tom Allsworth, said Revolution Beauty has expanded to serve its customers in more than 140 countries and to date, it now has partnerships with retailers in 45 countries.
In particular, the multi-brand firm’s digital strategy is largely supported by its social media following of more than 6.3 million with its model focused on establishing the company as a ‘first to mass’ innovator, with new affordably priced products launched on a weekly basis.
To date, Revolution has launched collaborations with many beauty influencers, including on the social media platform TikTok with its current campaign reaching over 4.2 billion views.
During 2020, the firm signed a significant number of new retail and digital partnerships and going forward, Revolution said it expects to announce several new partnerships in 2021.
Commenting on its market position, 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.”
He added, “All of this together with our broad geographic presence and extensive product ranges, means Revolution Beauty is well-positioned to take advantage of the significant opportunities for expansion in a compelling growth market.”
In a new Q&A with Vox Markets, Revolution Beauty discuss their upcoming IPO. CEO, Adam Minto, talks through the principle behind the key USPs and the firm's go-to market strategy.
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