As the beauty M&A and IPO markets start to pick up again, Il Makiage-owner Oddity is one of the first to test the waters.
Oddity previously filed an F-1 to go public in June but, at the time, it had not listed an offering price per share. Ahead of the IPO on Tuesday, the L Catterton-backed company priced its initial public offering above expectations, at $35 a share, as the public market appetite for new listings rebounds. The initial targeted range was $27-$30. According to a statement, Oddity and its shareholders raised $424 million in the upsized initial public offering via a sale of about 12.1 million shares on Tuesday.
This latest IPO signals a rebound in the public market, which slumped due to economic stressors like inflation and worries about a possible recession. According to Dealogic, 2022 marked the slowest period for IPOs in at least two decades. Companies going public in traditional IPOs raised $9.1 billion in the year’s first half, far below the $27 billion comparable-period average over the past decade. But recent IPOs and rumored IPO talks provide more confidence that newly listed companies can succeed. In June, consumer food chain Cava publicly debuted with a price of $22 per share, but the stock closed at $43.30 per share. And consumer beverage brand Liquid Death tapped Goldman Sachs in July for an IPO. On the heels of Kim Kardashian’s Skims brand raising another $270 million in outside funding, valuing the company at $4 billion, there’s discussion that a future IPO is not far behind.
Oddity, whose brands include Il Makiage makeup and DTC beauty brand SpoiledChild, is profitable. According to the filings, it had a net income of $21.7 million on net revenue of more than $324 million in 2022, an increase from $13.9 million on more than $222 million in revenue the previous year. Spoiled Child, launched in February 2022, generated $25.9 million in net revenues during the year ended December 31, 2022. In the lead-up to its public offering, Oddity acquired Boston-based biotech lab Revela for $76 million in April. Oran Holtzman, CEO of Oddity, has previously teased launching additional brands.
The stock trades on the Nasdaq under the ticker symbol “ODD.”