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November, 29 2020

Advent Partners' SILK Laser Clinics injects brokers for IPO plans

Laser, skin care and cosmetic injections business SILK Laser Clinics is gearing up for a sharemarket float.

Street Talk can reveal the company, which is backed by Melbourne-based buyout firm Advent Partners, is targeting an initial public offering and sharemarket listing in December.

SILK Laser Clinics is readying a pitch to small cap and retail investors.  

It is understood SILK Laser Clinics has hired stockbrokers Wilsons and Ord Minnett to prepare the company for listed markets and sell the deal to equities investors.

Sydney boutique Highbury Partnership, which took another Advent portfolio company Integral Diagnostics to the ASX boards in 2015, is also involved as financial adviser.

It is expected to be pitched as a high growth roll-out story, and comes on the back of a record trading period in recent months.

SILK Laser Clinics has grown to 53 clinics nationally, from only 15 two years ago.

It has clinics in South Australia, Western Australia, NSW and Queensland and it is understood the owners plan to roll out six to 10 new clinics a year into the forseeable future.

It is expected to seek to raise about $100 million and be pitched to small cap investment funds and retail investors, via the two broking firms.

The mooted float comes less than three years after Advent took a stake in SILK in a tranasaction that valued the business at $50 million to $100 million.

Street Talk first flagged SILK owners' intention to seek an exit – either a listing or trade sale – last December.

It would be something new for small cap investors to stew on. While they're accustomed to analysing and valuing retailers and roll-out stories, they've not previously been asked to think about a laser clinics and injectables business.

It's a relatively new industry in Australia and the big player is KKR & Co's Laser Clinics, which the private equity bigwig bought for about $600 million in 2017 with plans to grow it domestically and offshore.