LONDON — Yatsen Holding Ltd., the parent company of cosmetics and skin-care brands Perfect Diary, Little Ondine, Abby’s Choice and Galénic, raised $616.9 million in a U.S. initial public offering on Thursday, selling 58.75 million American depositary shares for $10.50 each.
Its founders David Huang, Yuwen Chen and Jianhua Lv rang the trading floor bells remotely from Rosewood Hotel in Guangzhou.
Goldman Sachs, Morgan Stanley, and China International Capital led the transaction. Yatsen’s shares are trading under the symbol YSG on the New York Stock Exchange.
The Guangzhou-based company said money raised from the IPO will be used in marketing and daily operations of the company, potential strategic investments and acquisitions, product development and technology development, and physical retail expansion beyond China.
Founded in 2016 and named after the founders’ alma mater, which commemorates China’s first president Sun Yat-sen, the company achieved net income of 3.03 billion renminbi in 2019, or $460.2 million, up 377.1 percent year-over-year from 635 million renminbi in 2018, and net income of 3.27 renminbi billion in the first three quarters of 2020, up 73.20 percent year-over-year from 1.89 billion renminbi in the first three quarters of 2019, according to the prospectus.
But because of the pandemic and the company’s increased investment in promotion, product research and development, and off-line channel expansion, the company recorded an adjusted net loss of 500 million renminbi in the first three quarters of 2020.
In 2018, 2019, and the first three quarters of 2020, its gross profit margin was 63.5 percent, 63.6 percent, and 63.1 percent, respectively.
For the nine months ended Sept. 30, the company said it had served 23.5 million direct-to-consumer customers.
Perfect Diary was the bestselling Chinese beauty brand during this year’s Singles’ Day shopping festival on Tmall.
Yatsen’s share price jumped 58.4 percent to $16.60 at press time, with a market capitalization around $11 billion.