Initial public offering of SILK Laser Clinics Australia priced

SILK Laser Clinics has been described as one of Australia’s largest speciality non-surgical aesthetic clinic chains. Picture: iStock.

The initial public offering of SILK Laser Clinics Australia has been priced at $3.45 per share.

The company will raise $84m, with its market value to be $163m.

The pricing was in the middle of the range of $3.30 to $3.65 per share.

It is understood that the book was covered across the entire range, but private equity owner Advent Partners wanted the business to trade well in the aftermarket, say market sources.

The price equates to 11.2 times the group’s forecasted earnings before interest, tax, depreciation and amortisation for the 2021 financial year.

Working on the listing is Highbury Partnership, Wilsons Corporate Finance and Ord Minnett.

The company had planned to raise between $80.9m and $87.3m, with the value including debt at between $150.4m and $164.8m.

That equated to between 10.8 times and 11.8 times its earnings before interest, tax, depreciation and amortisation.

The prospectus will be lodged on November 24 and the company will start trading on December 16.

SILK Laser Clinics has been described as one of Australia’s largest speciality non-surgical aesthetic clinic chains offering a range of treatments and health and beauty services and products such as laser hair removal, injectables, skin treatments, body contouring and fat reduction services and facial skincare products.

The company was co-founded in 2009 by chief executive Martin Perelman and has grown from a single clinic in South Australia to 53 nationally.

Its model is primarily focused on organic growth through expansion in existing clinics and a network clinic rollout plan.

The objective of the business is to open six to 10 clinics per year, with a network plan to grow to 150 clinics.

SILK is forecasting $53.5m in annual revenue for the 2021 financial year, equating to 66 per cent growth, and $14m of EBITDA.

Following the listing, Advent will reduce its 64.3 per cent interest to about 28 per cent and new shareholders will own between 51.1 per cent and 51.7 per cent of the company under the offer.