Olaplex Holdings Inc. (OLPX) is a science-based beauty company focused on manufacturing premium hair care products for the professional hair care industry. The company’s portfolio includes products for both professional and home use, including shampoos, conditioners and bond multipliers. The company holds 100 patents. Its products are based on scientifically-backed designs aimed at treating damaged hair.
Olaplex went public on the Nasdaq on September 30, 2021 at $21 per share, well above its initial range of $17-$19. After the greenshoe option was exercised, the offering sold a total of 73.7 million shares, up from an initial 67 million shares. Shareholders have raised over $1.5 billion in his initial public offering (IPO). The stock ended the week at $23.73 per share, with a valuation of over $15 billion.
Olaplex originally filed for an IPO of common stock held by two institutional investors on August 27, 2021.
An investment fund affiliated with private equity firm Advent International, which acquired Olaplex in January 2020, owns approximately 78.9% of the total voting power of Olaplex’s common stock. This makes Olaplex a “controlled entity” and exempts it from certain corporate governance requirements, such as the requirement to have an independent board of directors and an independent compensation committee.
important point
- Olaplex is a premium hair care company that specializes in providing professional hair care products.
- Olaplex listed on the NASDAQ on September 30, 2021 under the ticker OLPX at $21 per share.
- The company’s two institutional investors sold a combined 73.7 million shares.
- Olaplex’s post-initial public offering (IPO) valuation will exceed $15 billion on October 1, 2021.
- The company generated net income of $49.4 million on net sales of $152.1 million for the most recent quarter ended June 30, 2021.
Olaplex was founded by former CEO Dean Crystal. With Krystal’s mother working as a licensed hairdresser and running a salon in her home and her father running her 26 beauty distribution stores, her son has a deep understanding of her business in hair care. was Christal launched her Olaplex in 2014, starting with just her three product lines marketed exclusively to hair care professionals. The company’s bond multiplication technology was a groundbreaking innovation in the industry that enabled hairdressers to repair damaged hair and improve the hair care services they provide to their customers.
Since its initial launch, Olaplex has further developed its product line and now offers 11 hair care products through specialty stores, specialty retailers and direct-to-consumer (DTC) channels. The company’s focus is to provide science-based products that address the treatment, maintenance, and protection of hair. Its product portfolio, backed by numerous patents, creates a barrier to entry for competitors in the hair care business and related industries. I’m here.
Olaplex is currently led by CEO and President JuE Wong. Wong, who has extensive experience in the beauty and consumer goods industry, was appointed CEO in January 2020. She has expertise in managing fast growing businesses. Tiffany Walden is Chief Operating Officer (COO), Chief Legal Officer and Secretary, and Eric Tiziani is Chief Financial Officer (CFO).
Olaplex Financials
Olaplex provided recent financial results on the second amendment to its S-1 registration form. The company’s net income for the quarter ended June 30, 2021 nearly doubled from the same period last year to $49.4 million. Net sales increased 175.3% year-over-year (YOY) to $152.1 million. For the full year of 2020, net income fell 35.5% despite revenue growth of 90.4%. High interest payments hit Olaplex’s earnings.
The company’s operations and financial results were also impacted by the COVID-19 pandemic. The coronavirus outbreak in early 2020 disrupted Olaplex’s retail stores, hair salons, manufacturing and distribution. Many salons were forced to close or have reduced operations, causing a shift in demand from the company’s specialty sales channels to specialty retail and DTC channels. Olaplex said it has not experienced a decline in demand from its DTC channel, even as restrictions ease and salons begin to return to more normal capacity.
As of June 30, 2021, the total carrying value of Olaplex’s assets and liabilities was $627.4 million. Total cash and cash equivalents on the company’s balance sheet at the end of 2020 were $76.4 million.
| Main Financials of Olaplex | ||
|---|---|---|
| Q2 FY2021 | Q2 FY2020 | |
| net sales ($ million) | 152.1 | 55.3 |
| Net Income ($ million) | 49.4 | 2.0 |
Source: Form S-1 Registration Statement of Olaplex Holdings Inc. Amendment No. 2
What is Olaplex Worth?
In June 2021, Bloomberg reported that Advent was considering options to sell Olaplex, targeting a valuation of at least $1.5 billion. Advent confirmed its ownership of Olaplex in early 2020, but financial details of the transaction were not disclosed. Advent owns his 89.3% of Olaplex’s outstanding shares. Another institutional investor, private equity firm Mousse Partners, owns 6.8%.
Post-IPO valuation of Olaplex is just over $15 billion as of October 1, 2021.
Olaplex’s main competitors
The global hair care market is expected to grow from an estimated $92.5 billion in 2020 to $105.1 billion in 2025. Olaplex consists of France-based L’Oréal SA (OR.PA), UK-based Unilever PLC (ULVR), Germany-based Henkel AG & Co. KGaA (HEN3), and Japan-based Kao and many other big rivals. (Kao). Olaplex also competes with smaller independent brands, some of which are owned by their retail customers.
Conclusion
Luxury hair care company Olaplex will go public on the Nasdaq on September 30, 2021. The IPO price was $21, well above the expected $17-$19 range, and as of October 1, 2021, its valuation exceeds $15 billion.
