(Alliance News) - Revolution Beauty Group PLC fell on its first day of trading on the AIM market on Monday morning.
Shares were trading at 152.51 pence, down 4.7% from their initial public offering price of 160p. Its market capitalisation fell to around GBP471.8 million from GBP495 million.
The beauty products retailer said its fundraising was significantly oversubscribed for and priced at the top of the valuation range. The placing included 69.2 million new shares and 118.3 million existing shares, raising gross proceeds of GBP110.7 million for the company and GBP189.3 million for selling shareholders.
"We are delighted to be joining AIM. It represents an important step in the company's evolution to becoming the most innovative and revolutionary beauty company in the world," commented Co-founder and Executive Chair Tom Allsworth.
Before the IPO on Monday morning, Jupiter Asset Management had entered into a cornerstone investment agreement with Revolution Beauty, subscribing for GBP90 million of the placing or just over 18% of the company. GBP45 million of that went to Jupiter's listed investment fund, Chrysalis Investments Ltd.
Since its founding in 2014 by Chief Executive Adam Minto and Executive Chair Tom Allsworth, Kent-based Revolution Beauty has expanded to serve customers in more than 140 countries and now has partnerships with retailers in 45 countries. It posted revenue of GBP157.6 million for the 14-month period to February 28.
Zeus Capital acted as nominated adviser and broker for the float.
By Will Paige; willpaige@alliancenews.com
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Chrysalis Inves (CHRY)
Revolution Beauty (REVB)