E.l.f. Beauty proposes second public offering of 7 million shares

By

Obi Anyanwu

Published
Mar 30, 2017

E.l.f. Beauty announced on Wednesday that it has begun a proposed secondary public offering of 7,000,000 share of common stock. The second offering comes six months after the cosmetic brand’s initial public offering.

 
The California-based brand will not be selling any of its shares of common stock. Instead, e.l.f. Beauty stockholders will sell all of the offered shares and will also receive all net proceeds. The company rehired J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Piper Jaffray & Co. and Wells Fargo Securities, LLC to act as book-running managers for the secondary public offering.
 
E.l.f., which stands for eyes, lips, face, issued its IPO in September and priced shares above expectations at $17. The company said the proceeds from the IPO will help pay down about $204 million in debt.

The company in March posted net sales of $230 million and a 33% increase in adjusted net income to $18.2 million. CNBC reported that the company's shares increased 14% after besting fourth quarter Wall Street expectations. In addition, e.l.f. beauty updated its full year 2017 earnings guidance on Wednesday and now expects its earnings per share to range from $0.40-0.43.
 
Founded in 2004 by father-son duo Alan and Joey Shamah, e.l.f. Beauty is a multi-channel cosmetics brand that sells products primarily online, at freestanding locations and at retailers such as Target, Walmart and CVS for prices as low as $1.
 
TPG Growth, the private equity firm of TPG Capital, acquired E.l.f. Beauty in 2014 for a sum ranging between $200 million and $300 million.