Specialist clinic network SILK Laser Australia Limited (ASX: SLA) has commenced trading on the ASX following a successful IPO which raised $83.5 million. SILK’s market capitalisation at the Offer Price will be $162.5 million.
A portion of the IPO proceeds will be used to execute SILK’s growth strategy which the company aims to achieve through organic growth within existing clinics, expansion of its network and clinic acquisitions where compelling opportunities present themselves.
Managing Director and Co-Founder, Martin Perelman, said the company will also continue to invest in business intelligence and dashboard tools which have been a key driver of strong clinic performance.
We’re excited to reach this next step in SILK’s journey and I would like to take the opportunity to thank all the SILK staff, our SILK franchisee partners and the board for their hard work in getting us to this point,” Mr Perelman said.
“For SILK, the IPO is another important milestone as we continue to execute our growth objectives, including the expansion of our clinic network across Australia. Our clinics have continued to perform strongly throughout the year, and I am confident that with the funds raised we can continue to benefit from this momentum and further accelerate our growth.
“I would also like to thank all of our shareholders for the strong support they have shown us through the process, and, in particular, I would like to welcome new shareholders who have recently joined the SILK journey. I look forward to updating you on SILK’s performance and progress as we work towards our growth objectives.”
Mr Perelman said SILK’s strong operational and financial performance seen in Q1 FY21 has continued into Q2 FY21. Favourable consumer preferences and trends towards self-care, wellness and removal, cosmetic injectables, skin treatments, body contouring and fat reduction services and skincare products.
Unaudited trading results for the quarter ending 30 September 2020 (Q1 FY21) and the first two months of Q2 FY21 to 30 November 2020 (YTD) indicate continued strong growth, noting that historically SILK’s financial performance is skewed towards the first half of the financial year:
Mr Perelman said the results were achieved despite all clinics in South Australia being closed for three trading days in November due to COVID-19 operating restrictions stipulated by the South Australian State Government.
The performance impact of clinic closures was offset by a successful Black Friday online marketing campaign in late-November. All SILK clinics have reopened with comprehensive hygiene and social distancing measures in place to support the health and safety of all staff and clients.
At the time of prospectus lodgement, SILK had 53 clinics across all Australian states and territories except Victoria and the Australian Capital Territory. As stated in the prospectus, SILK has a network plan for approximately 150 clinics (including franchised clinics) with an objective of six to 10 new clinic openings per year. SILK expects to open one new clinic in South Australia and two new clinics in Queensland in December 2020, taking the total number of clinics to 56 by the end of the 2020 calendar year.