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June 28, 2005

Spanish Plastic Surgery Firm Starts IPO

Europe's first public share sale by a cosmetic surgery firm opened on Tuesday as Spain's Corporacion Dermoestetica seeks funds to rapidly expand its business of making nips and tucks available to the middle class.

Up to 17.26 million shares in the firm which bills itself as Europe's leading cosmetic surgery company will be sold to the public and institutions at an indicative maximum price of 9.10 euros ($11.03) per share, according to the prospectus filed with Spain's stock market commission on Tuesday.

That would value the 43.3 percent of the company being offered for sale at up to 157.07 million euros, and the entire firm at 362.75 million euros.

Corporacion Dermoestetica says it has made being beautiful more democratic by bringing varicose vein removal and nose sculpting to the middle class, and offering five-year financing plans to pay for it.

The steep price-to-earnings ratio of 173 to 207 times 2004 earnings, based on the indicative price range, reflects a sharp fall in last year's profits as the company expanded, the prospectus said.

The company did not give a profit forecast.

Provisional orders for shares can be made from Tuesday until July 5 for retail investors, the date on which the maximum retail price will be set, while institutions have until July 11.

Small investors have been assigned 20 percent of the initial offer, with Spanish institutions taking another 20 percent and foreign institutions making up the remainder.

Pricing will be on July 11, with stock market trade starting on July 13.

Corporacion Dermoestetica is active in Italy, Britain, Portugal and Spain. It is expanding internationally and plans new openings soon in all those countries.

Dermoestetica, which also offers breast enlargement and treats acne, generated revenues of about 73 million euros in 2004, which includes a British acquisition, 14 percent more than a year earlier.

However, costs rose 24 percent partly due to an advertising campaign, while overall the company reported a net profit of just 1.75 million euros, down 71.6 percent, the prospectus said

Posted by sergeg at June 28, 2005 10:46 PM

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