Revolution Beauty poised to join London market in £500m debut

Revolution Beauty expects to raise more than £110m when it makes its London market debut later in July, the skincare and beauty specialist confirmed on Tuesday.

The firm, which first announced plans to float on Aim last month, confirmed that the placing of new shares was expected to raise gross proceeds of £110.7m. Net proceeds will provide the company with around £20m in cash, which will be used to fund growth plans.

The placing of sale shares, meanwhile, is set to raise gross proceeds of £189.3m for the selling shareholders. Chief executive Adam Minto and executive chairman Tom Allsworth are selling £15.6m each, with the balance being sold by minority shareholder TSG Consumer.

Minto and Allsworth, who founded the business in 2014, will each retain 15.8% of the enlarged company post-IPO

Revolution Beauty, which employs 220 people and operates in 45 countries, is expected to have a market capitalisation of £495m.

Minto called the IPO, slated for 19 July, was a “significant milestone” for the company.

He continued: “[It] provides us with a solid platform to executive our exciting growth plans and take advantage of the significant opportunities for global expansion in a compelling growth market.”

Revolution has appointed Zeus Capital nominated advisor, bookrunner and broker, and has struck a cornerstone investment agreement with Jupiter Asset Management, which has agreed to subscribe to £90m of the placing.

In the 14 months to 28 February 2021, revenues came in at £157.6m while adjusted earnings before interest, tax, depreciation and amortisation was £13.1m.