SILK Laser Clinics plans for smooth ASX listing

SILK Laser Clinics will be the nation’s first “pure play” publicly owned cosmetic beauty chain when it lists on the sharemarket on Tuesday.

SILK Laser Clinics chief executive Martin Perelman.

SILK Laser Clinics will be the nation’s first “pure play” publicly owned cosmetic beauty chain when it lists on the sharemarket on Tuesday.

SILK’s chief executive and co-founder Martin Perelman, who is in Sydney with family, core staff and business partners to mark the milestone, said he was “overwhelmed”.

“The offer has been fully subscribed and we can’t wait to take the business into a new growth phase,” he said.

The business, which started in South Australia in 2009, has grown to 53 clinics nationally through a mix of company-owned, joint venture and other franchise operations that now employ 460 staff.

SILK raised $84m through the issue of 5.8m new shares and the sale of 18.4m existing shares at $3.45 each, giving it an estimated market capitalisation of $163m.

SILK’s IPO price equates to 11.2 times forecast earnings before interest, tax, depreciation and amortisation for the 2021 financial year.

SILK offers laser hair removal, cosmetic injections and other skin and body treatments, including EmSculpt that has grown in popularity among celebrities, including Jennifer Lopez and Kim Kardashian.

SILK’s core demographic is predominantly females between 20 and 49 years old with 40-year-old busy mums being the “sweet spot”.

The business, partially owned by equity firm Advent Partners since 2018, is looking to expand in the eastern states.

It has a goal to grow to 150 clinics over the next five to 10 years through a mix of acquisitions and new openings.