The online beauty platform ODDITY was able to sell more shares than planned as part of its IPO. The issue price was also above the previously announced price range.
• ODDITY sets issue price at US$35
• Valuation reached in billions
• Initial price well above issue price
The tech company ODDITY exceeded its own expectations at its IPO on Tuesday. The online platform was able to sell around 12.1 million shares at a price of 35 US dollars and thus take in 424 million US dollars. The company had previously offered investors 10.5 million shares at a price of $32 to $34. And even that range had previously been increased by the Israeli-American company from $27 to $30. Given this issue price, ODDITY is valued at approximately US$2 billion.
After the IPO on Tuesday, ODDITY will be traded on the US stock exchange NASDAQ for the first time on Wednesday under the ticker symbol “ODD”. The initial price of 49.10 US dollars is 40.29 percent higher than the issue price of 35 US dollars. In the further course, the ODDITY share is temporarily listed 36.69 percent firmer at 47.82 US dollars.
Revolutionizing the beauty industry with technology
ODDITY is a tech company that has set itself the goal of declaring war on stationary retail in the area of beauty and wellness with a digital offering. The company is known for its brands IL MAKIAGE and SpoiledChild, but there are plans to establish other brands in the future. The company wants to differentiate itself from other beauty companies by using innovative technologies such as artificial intelligence and machine learning, as this enables it to better match customers with the beauty products that suit them or to tailor its own products directly to them. For this, ODDITY uses the process of molecular discovery, which is already used in the pharmaceutical industry.
The company is headquartered in New York but also has a research center in Tel Aviv and a biotechnology lab in Boston. According to ODDITY, its goal is nothing less than to transform the global beauty and wellness market, while always emphasizing its outsider position as a tech company.
ODDITY convinces with more turnover and profit
The development of sales and profit, which was openly presented in the IPO presentation, shows that the calculation seems to be working out. It shows that over the past four years, ODDITY has steadily increased revenue to $325 million in 2022 (+45 percent YoY). Adjusted EBITDA increased from $7 million in Q1 2022 to $28 million in Q1 2023. For the first half of 2023, the company is targeting sales of $300 million to $310 million ($188 million year-on-year). Adjusted EBITDA is expected to increase to between $60 million and $65 million from $31 million last year. According to the company, it now has more than 40 million users and uses more than a billion data points. As reported by ODDITY, it had $106 million in cash reserves as of the second quarter of 2023.
The company’s CEO is Oran Holtzman, who will retain almost all of ODDITY’s B shares even after the IPO, giving him three quarters of the decision-making power.
The successful IPO should also have a positive effect on the general US IPO market. According to Bloomberg, this year is a little behind last year. Since Jan. 1, IPOs have raised $13.4 billion, up from $18.8 billion in the same period a year earlier. Now it only remains to be seen whether ODDITY will be able to maintain the momentum through the IPO in the longer term.
Editorial office finanzen.net