E.l.f. Beauty has priced its secondary offering, expected to close April 5, at $27 per share.
The mass-market beauty business said it would offer 7 million more shares on the public markets on Wednesday. Certain selling stockholders are expected to grant the underwriters a 30-day option to purchase up to an additional million shares of common stock at the public offering price.
E.l.f.’s shares were trading at $28.16 Friday morning. When the company first went public in September it priced shares at $17 planning for a $141.6 million raise, but shares closed at $26.50 and have held strong since then. The company makes cosmetic, skin-care and beauty tools that are priced at an average of $3. E.l.f. products are sold through Target, Wal-Mart, Walgreens, Ulta Beauty and other retailers, as well as its own stores. The company generally debuts at least one new item per week, testing online before bringing anything into stores, and has a 20-week product development cycle.
E.l.f. executives have previously indicated there are no signs of a slow down for the brand — chief financial officer and brand president John Bailey said, “we often joke around the company that she has a bottomless makeup bag…these consumers cannot get enough product. Bailey joined E.l.f. from TPG Growth, the private equity firm that took E.l.f. public.
“Our aspiration is to be a billion-dollar brand,” said E.l.f. chief executive officer Tarang Amin back in January. “One that is highly profitable.”
J.P. Morgan Securities LLC and Morgan Stanley & Co. are the joint lead book-running managers for the offering. Piper Jaffray and Wells Fargo Securities are also acting as book-running managers in the proposed offering. William Blair, BMO Capital Markets Corp., Cowen & Co., Stifel, Nicolaus and SunTrust Robinson Humphrey are acting as comanagers in the proposed offering.