The Offer: Yatsen (NYSE: YSG) plans to sell 58.75 million ADSs at a price of $ 8.50 to $ 10.50.
The company says it has the no. 1 online color cosmetics brand in China with Perfect Diary. Little Ondine is the best eyeliner / mascara on Tmall, the online retailer of the Alibaba Group (NYSE: BABA).
Perfect Diary was the only color cosmetics brand to have a GMV of RMB 100 million on Tmall for each month of 2019 and the first nine months of 2020, the company says. Yatsen also owns the Abby’s Choice brand of moisturizers.
The company has a fan base of 48 million people and had 23.5 million direct customers to consumers in the first nine months of 2020.
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Galenic Acquisition: Yatsen recently announced the acquisition of the iconic French skincare brand Galenic. Yatsen will buy the brand from Pierre Fabre, and the original owner will retain a 10% minority stake.
The brand has “acquired an iconic status in France”. Yatsen will support the brand in Europe and launch the brand in China and other Asian markets.
Growing Market: The Chinese beauty market was worth an estimated $ 38.8 billion in 2019, according to the filing. The country has 231.5 million millennials and 171.4 million GenZers, who are increasing the sale of beauty products online.
China has the highest percentage of e-commerce penetration in the beauty market. The country’s share of 31.4% in 2019 was higher than the US total of 21.9% and the global average of 15.9%.
Of the five largest color companies in China, the top four are international companies. Yatsen ranked fifth in 2019 and was the only national company in the top five. Yatsen posted the highest growth of the top ten companies with a 327% year-on-year increase in the color cosmetics market from 2018 to 2019.
Finance: Yatsen reported a year-over-year revenue increase of 377% to $ 446.4 million for fiscal 2019. Net income was $ 11.1 million for fiscal 2019.
The company had revenue of $ 481.9 million during the first nine months of 2020.
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