Cosmetics e-tailer seeks $2.5 million

By Aimee McClinchy

Friday 10th March 2000

Cosmetics retailer Beauty Direct & Online Solutions announced it would seek $2.5 million in an initial public offering and a listing on the main Stock Exchange board on April 14.

The swift timing of the IPO will make it the first listed internet stock, beating online music retailer EstarOnline by a matter of weeks.

The offer, underwritten by DF Mainland, will issue 10 million shares at 25c each and accept up to 4 million additional ordinary shares with a minimum subscription of 4000 shares.

Beauty Direct will end up with a market capitalisation of $6 million.

Beauty Direct, which sells international brands such as Christian Dior, Yves Saint Laurent and Lagerfield, forecasts it will be in profit in 2002.

The directors do not intend Beauty Direct will pay dividends until after March 31, 2002.

Chief executive Bronwyn Evans said globally branded beauty products carried a premium markup, and did not suffer the same copyright or piracy problems plaguing other areas such as software, intellectual property-based products and videos.

She said the company already offered haircare products, skin care and perfumes but would branch out into health products.

Ms Evans said the company's directors were focused on making the site the leading beauty portal in Australasia.

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