As we come out of this pandemic, investors continue to look for reopening plays with tremendous upside. Among the sectors increasingly in focus is the beauty segment. For investors looking at the upcoming Olaplex IPO, this hair-products maker likely is a good fit for many such investors.
Indeed, this California-based company has grown its market share impressively of late. Among the reasons behind Olaplex’s ability to insulate itself from the stiff competition in the beauty and hair segment has been various patents the company owns.
This year, various patents tied to Olaplex’s hair bleaching products came to the forefront. The company sued rival L’Oreal over stealing its trade secrets and infringing on its patents. While this lawsuit was subsequently thrown out in a U.S. appeals court, investors seem to like the moat around this company.
Accordingly, there’s news surrounding the pricing of the upcoming Olaplex IPO. Here’s what investors may want to know about this up-and-coming stock.
What to Know About the Upcoming Olaplex IPO
It’s expected that Olaplex will trade on the Nasdaq under the ticker symbol OLPX tomorrow. Accordingly, this highly anticipated IPO has garnered a tremendous amount of attention this week. Investor demand for shares of what will be OLPX stock is burgeoning right now. This has led Olaplex to boost its IPO price ahead of its debut.
The company announced Tuesday that it raised its target price range to $17-$19 per share. This is substantially higher than the previous target price range of $14-$16 listed in its earlier filings. Various reports note that, at the midpoint of this price range, Olaplex could stand to raise as much as $1.2 billion. The company will be seeking a valuation that could be as high as $12.3 billion.
Indeed, this is a substantial valuation for a hair products company. Accordingly, significant intrigue remains around how this IPO will perform this week. Investors would do well to keep this stock on their watch list in the coming days.
Olaplex has been a high-growth stock, posting revenue growth of around 90% year-over-year. This growth has come at a time when the economy is not yet fully reopened. Accordingly, many investors expect to see continued high growth for some time. At an adjusted net income level of $131 million for this past year, the company will trade around 10-times adjusted earnings, a reasonable valuation. Accordingly, this is an IPO that could see some impressive interest in the coming days.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com.
