(Businesshala) – Shares of Olaplex Holdings Inc jumped more than 19% at its stock market debut on Thursday, giving the hair product maker a market capitalization of $16.2 billion.
Shares of the company, owned by private equity firm Advent International, opened at $25, compared to an initial public offering (IPO) price of $21 per share.
Some of Olaplex’s existing shareholders sold 73.7 million shares in the company’s upsized IPO and raised $1.55 billion. The offering price was above the previously estimated price range of $17 to $19 per share.
The company did not offer any shares in the IPO and will not generate any proceeds.
Olaplex’s products, including shampoos, conditioners, treatments and oils, are popularly used to treat damaged hair. They cost around $28 each and bundles run up to $196.
The company, which was founded in 2014 in a garage in California, now sells its products in more than 100 countries. LVMH-owned beauty chain Sephora, professional beauty product distributor SalonCentric and Sally Beauty Holding Inc.’s Beauty Systems Group are among Olaplex’s largest customers.
Advent, which acquired Olaplex in 2019, holds about 79.6% of the combined voting power in the company after offering through its associated investment funds.
Goldman Sachs & Company, JP Morgan, Morgan Stanley and Barclays were the principal underwriters of the IPO.