Santa Barbara’s hair product maker Olaplex valued over $16bn as shares soar in debut



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Santa Barbara’s hair product maker Olaplex valued over $16bn as shares soar in debut

Shares of Olaplex Holdings Inc., the Santa Barbara, California-headquartered hair products maker owned by private equity firm Advent International, soared more than 19.0 per cent on their NYSE debut later this week, proffering the hair product start-up a market cap over $16.2 billion.

In point of fact, Olaplex’s debut in US capital market followed an upsized IPO (Initial Public Offerings) where certain existing stakeholders in the Californian hair product company had sold off 73.7 million shares at a price tag above a target range between $17 to $19 per share, raising as much as $1.55 billion, while as the company did not issue any ADSs (American Depository Shares), it would not be able to reap any proceeds of its IPO.

Besides, even after the offering, Advent still owned a roughly 79.6 per cent of combined voting power in the company’s management board.

Advent-owned Olaplex valued at over $16 billion

Nevertheless, shares’ prices of Olaplex had opened up the session at $25 per share, well above an IPO tag of $21 a share. Meanwhile, citing a through and through optimism over Olaplex’s public market floatation, President and Chief Executive Officer JuE Wong said, “The visibility we get through the IPO will help in brand building and brand awareness...with the end consumer.

It (IPO) will also help us to retain and recruit good talent”. Founded back in 2014s in a garage in California, Olaplex turned into a leading manufacturer of hair products, branching out its markets across 100 countries, while heavy-weight beauty chains like of Sephora, SalonCentric alongside Sally Beauty Holdings Inc., have been Olaplex’s top clienteles.

Olaplex has wide-ranging hair care products such as shampoos, conditioners, oils and treatment for damaged hairs, each priced at $28.