Cosmetic clinic company Stormeur won’t list on the ASX until March

Cosmetic injectables clinic operator Stormeur has pushed back its ASX listing as it looks to raise more capital.

Stormeur — which operates cosmetics injectables clinics — has pushed back its IPO.

Cosmetic injectables clinic operator Stormeur — which counts former Palmer United Party candidate Tess Lazarus as a proposed director — has pushed its ASX listing back until March, five months later than originally expected.

The Perth-based business, which was launched in 2017, and which operates 17 clinics under the Cosmetique brand across five states, is seeking to raise a minimum of $6m ahead of a listing on the ASX, which was originally scheduled for October 21.

Stormeur’s prospectus says the funds raised would be used to open four new clinics across NSW and Victoria, and grow the existing business through enhanced marketing and operations.

“In addition to the above main objectives, the group intends to explore acquisition opportunities that may arise in relation to complementary businesses within the health and personal services sectors in Australia and internationally,’’ the prospectus says.

Stormeur says in its prospectus that the Australian facial injectables market was estimated to be worth $US2.77bn ($451bn) in 2023, and had the potential for rapid further growth.

Tess Lazarus with her husband, former rugby league player Glenn Lazarus

“There is an expectation that the facial injectable market in Australia will see growth at a compound annual growth rate of approximately 19.3 per cent by 2030, to reach a value of $US9.1bn,’’ the prospectus says.

“Recent trends have shown that there has been a tendency for consumers to favour minimally invasive procedures in facial rejuvenation (rather then more substantial surgery under general anaesthetic).

“This shift towards minimally invasive procedures, along with the increasing awareness surrounding aesthetic procedures is expected to promote growth in the market.

“It is considered that individuals within the ages of 25 to 44 prioritise personal appearance (including reducing signs of ageing) particularly due to growing influence of the social media culture.’’

Stormeur says in its prospectus that its clinics delivered more than 300,000 treatments in the 12 months to mid-July.

The company is 97.6 per cent owned by founder and executive chairman Dr Vivek Eranki and Dr Kalyani Eranki, with that figure to fall to 44.9 per cent on listing.

Currently, virtually all of the company’s revenue, at more than 99 per cent, comes via treatments such as non-surgical cosmetic injectables, skin needling and dermal peels, while less than 1 per cent comes from laser hair removal, which the company is expanding into, the prospectus says.

The group made a statutory loss of $36,152 in the 2023 financial year, on revenue of $6.9m, and says it has a gross margin of 62 per cent, with the average cost per treatment in FY23 coming in at $330.

Stormeur issued a supplementary prospectus in early December, saying it was now accepting applications for shares until February 17. It had also struck a partnership with Nasdaq-listed Tiger Brokers to promote the offer, the company said.

The company’s proposed board includes Ms Lazarus, who ran unsuccessfully as a Palmer United Party candidate in the 2015 Queensland election.

Her husband, former rugby league star Glenn Lazarus, was a Palmer United Party senator until his resignation in 2015 over differences with Mr Palmer, including the sacking of Ms Lazarus by the party, and her treatment by Mr Palmer, who Ms Lazarus accused of bullying.

The party said at the time that Ms Lazarus was sacked “primarily because she failed to comply with the terms of her employment’’.

The Stormeur prospectus says Ms Lazarus is “considered a pivotal thought leader within the industry, renowned for steering numerous brands and businesses towards significant growth’’.

Stormeur’s market capitalisation would be $22.5m on listing, based on a $6m initial public offer raise. The offer is not underwritten. The company does not expected to pay a dividend in the two years post-listing.

Once listed, Stormeur will be the only ASX-listed pure-play beauty exposure after Wesfarmers’ Australian Pharmaceutical Industries last year acquired the Silk Laser Clinics chain for $180m, after a desultory performance in its short life on the ASX.

In early 2023, API bought Eden Laser Clinics for $8.5m. API also owns the Clear Skincare chain, now melded with Silk.

Private equity firm KKR got on the beauty wagon in 2017, by buying Laser Clinics Australia for $650m.

The Australian’s Dataroom column reported late last year that KKR could be looking to sell the business, which has more than doubled in size since it was bought.

Stormeur is one of just four upcoming listings registered on the ASX website: Mawson Gold is scheduled to list on January 16, Burrendong Minerals on January 31 and Sigiuri Gold is expected to list on March 7.

Stormeur did not respond to a request for comment.

Originally published as Cosmetic clinic company Stormeur won’t list on the ASX until March