Thakral Corporation is estimated to recognise GBP16.4 million ($28.5 million) from the initial public offering (IPO) of The Beauty Tech Group, which is priced at GBP2.71 per share.
Thakral has an effective pre-IPO interest of 9.55% in The Beauty Tech Group, which is targeting to be listed and quoted on the London Stock Exchange (LSE) on Oct 8.
As part of the IPO, Thakral will divest 2.86% of its holding, or 2,864,515 shares for $13.1 million. It will continue to hold about 6.04% of shares in the company, which will be revalued at the market price at each reporting date.
Based on the IPO price of GBP2.71 per share, Thakral’s remaining shares will be worth about GBP18.1 million.
As such, Thakral is set to recognise a total gain of about $28.5 million with the partial disposal and revaluation of its remaining investment upon admission after considering costs and potential tax impact.
Thakral says that it will use this cash from disposal of shares to be redeployed as capital into opportunities that will enhance earnings and long-term growth either in equity investments or otherwise.
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Meanwhile, The Beauty Tech Group says that it will use the proceeds from the IPO to pare down debt, including the repayment of the remaining balance and accrued interest of approximately GBP22.5 million under their existing bank facility. The IPO has been successfully priced at GBP2.71 per share and accordingly, the market capitalisation of The Beauty Tech Group will be approximately GBP300 million at the time of commencement of conditional dealings.
Following the IPO, the reclassification will result in an uplift in Thakral’s net asset value (NAV).
For illustrative purposes and based on the assumption that the IPO and partial disposal were completed on June 30, 2025, NAV attributable to shareholders is expected to increase by 10% from $2.12 per share to about $2.34 per share.
Thakral will recognise a one-off gain in its income statement for FY2025, resulting in an increase in profit and earnings per share (EPS).
For illustrative purposes only and based on the assumption that the IPO and the partial disposal were completed on Jan 1, 2025, the EPS attributable to shareholders is expected to increase by 26% from 86 cents per share for the half-year ended June 30, to approximately $1.08 per share.
The gearing ratio of Thakral will improve from 0.27 to 0.25.
Shares in Thakral closed 1 cent lower or 0.617% down at $1.61 on Oct 6.
