SILK Laser (ASX:SLA) share price up 6% after completing IPO

The SILK Laser Australia Limited (ASX:SLA) share price has completed its IPO and hit the ASX boards this morning. Here's how it is doing…

adore beauty share price

Image Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The SILK Laser Australia Limited (ASX: SLA) share price has hit the ASX boards running this morning following the successful completion of its initial public offering (IPO).

The laser, skin care, and cosmetic injections company's shares are currently changing hands for $3.65.

This is 6% higher than the SILK Laser listing price of $3.45 per share.

The SILK Laser IPO.

SILK Laser has landed on the Australian share market on Tuesday after raising $83.5 million at $3.45 per share through its IPO. This gave the company a market capitalisation of $162.5 million.

According to its prospectus, some of the proceeds from the IPO will be used to execute SILK's growth strategy. This strategy includes organic growth within existing clinics, expansion of its network, and clinic acquisitions where compelling opportunities present themselves.

Management also intends to continue to invest in business intelligence and dashboard tools, which have been a key driver of strong clinic performance.

What is SILK Laser?

SILK Laser was founded in 2009 and has become one of Australia's largest specialist clinic networks.

Through its 53 clinics in metropolitan and regional Australia, the company offers a range of non‑surgical aesthetic products and services.

Its five core offerings comprise laser hair removal, cosmetic injectables, skin treatments, body contouring and fat reduction services, and Owned Brand skincare products.

Financials and trading update.

In FY 2020 the company achieved revenue of $32.3 million and net profit of $796,000.

Looking ahead, the company's prospectus forecast is for revenue of $53.5 million and net profit after tax of $5.4 million in FY 2021.

However, as of the end of the first five months of FY 2021, SILK Laser is on track to beat its forecasts.

Management revealed that unaudited network cash sales remain well ahead of last year and are up 63% on the prior corresponding period to $38 million.

An important milestone.

SILK Laser's Managing Director and Co-Founder, Martin Perelman, believes this IPO is an important milestone for the company.

He commented: "We're excited to reach this next step in SILK's journey and I would like to take the opportunity to thank all the SILK staff, our SILK franchisee partners and the board for their hard work in getting us to this point."

"For SILK, the IPO is another important milestone as we continue to execute our growth objectives, including the expansion of our clinic network across Australia. Our clinics have continued to perform strongly throughout the year, and I am confident that with the funds raised we can continue to benefit from this momentum and further accelerate our growth," Mr Perelman added.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Rising gold share price represented by a green arrow on piles of gold block.
Gold

3 reasons to buy this surging ASX All Ords gold stock today

The ASX All Ords gold stock has doubled investors’ money in 12 months, and this leading expert forecasts more outperformance…

Read more »

Two colleagues at work looking at a tablet and smiling at a rising share price.
Share Gainers

Why Generation Development, Orica, Pro Medicus, and Zip shares are storming higher today

These shares are having a strong session on Thursday. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why ANZ, Brainchip, Light & Wonder, and Pilbara Minerals shares are falling today

These shares are tumbling on Thursday. But why?

Read more »

A picture of the US Federal Reserve podium for making media announcements.
Share Market News

Why the Fed just left interest rates on hold and what ASX investors can expect next

With the Fed keeping interest rates on hold, when can ASX investors expect the central bank’s next cut?

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

Up 114% in a year, why is the Pro Medicus share price leaping higher again on Thursday?

Pro Medicus shares are back in form today and leaping ahead. Here’s why.

Read more »

A railway worker walks along the train tracks in a visi vest and speaking into a walkie talkie.
Share Market News

Are Aurizon shares a buy, hold or sell based on Macquarie's report?

Here’s what this broker has to say about this Industrials stock

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Broker Notes

Leading broker puts buy rating on Zip shares

Big returns could be on offer for investors according to its analysts.

Read more »

Contented looking man leans back in his chair at his desk and smiles.
Share Market News

5 things to watch on the ASX 200 on Thursday

A positive session is expected for Aussie investors today. Here's what is happening.

Read more »