Silk Laser Clinics releases ASX plans
Silk Laser Clinics plans to go public and is looking to raise about $83.5m in an initial public offering (IPO).
Now backed by private equity firm Advent Partners, Silk Laser Australia has lodged its prospectus with ASIC with financial firm Wilsons the joint lead manager and underwriter to the IPO.
The Silk network was founded by Adelaide-based Martin Perelman in 2009. Today there are 53 clinics across the country providing non‑surgical aesthetic products and services. Core to the business are laser hair removal, cosmetic injectables, skincare services, body contouring and fat reductions services, as well as owned brand skincare products.
Perelman, CEO at Silk Laser Clinics, said “Our mission is to enable all consumers to have access to high quality and high efficacy non‑surgical aesthetic treatments. We aim to do this by providing high quality client service, using advanced technology, at affordable prices.
“Silk’s growth model is primarily focused on organic growth through growth in existing clinics and a network clinic rollout plan. This will allow Silk to expand its geographic footprint while maintaining a consistent offering and quality of client experience.”
The franchised chain has plans for significant network growth: six to 10 clinics annually, with a goal of about 150 clinics (including franchised clinics).
Perelman said the current addressable market, based on Silk’s product and service offering, is estimated at about $5.4 bn annually.
“With an initial focus on laser hair removal treatments, Silk has expanded its offering to include more specialised services such as cosmetic injectables and body contouring. This combination of services is primarily offered only by a targeted subset of competitors within the addressable market.
“We believe market demand is driven by the growing popularity of beauty regimes and the increasing affordability of the related services, making them more accessible.”
Perelman revealed the chain has achieved a two-year compound annual growth rate (CAGR) of 79 per cent and 414 per cent to FY2020 in Network Cash Sales and Underlying EBITDA.
“Silk’s operations have been largely resilient to the impacts of Covid‑19, with June to September 2020 trading above average and increased new client numbers suggesting a change in performance that may be sustained going forward,” he said.
Silk Laser Clinics is expected to start trading on the ASX on Tuesday, 15 December 2020.