L Catterton-Backed Oddity Surpasses Goal With $424 Million IPO

Beauty and wellness company Oddity Tech Ltd. and its shareholders raised $424 million in an upsized initial public offering after pricing shares above a marketed range.

(Bloomberg) — Beauty and wellness company Oddity Tech Ltd. and its shareholders raised $424 million in an upsized initial public offering after pricing shares above a marketed range.

The Tel Aviv-based company, along with its founder and private equity firm L Catterton, sold about 12.1 million shares Tuesday for $35 each, according to a statement. Oddity had marketed 10.5 million shares for $32 to $34, a range it already had elevated on Monday.

At the IPO price, Oddity has a market value of about $2 billion based on the outstanding shares listed in its filings with the US Securities and Exchange Commission. Accounting for employee stock options, the company’s fully diluted value is closer to $2.4 billion. That compares with a valuation of $1.44 billion in connection with a secondary transaction in January 2022, according to data provider PitchBook.

Oddity adds to a string of consumer-oriented companies going public after a year-plus dearth of US listings. Since raising $365 million including so-called greenshoe shares in June, fast-casual restaurant Cava Group Inc.’s stock price has more than doubled. Discount retailer Savers Value Village Inc.’s IPO the following week raised $401 million, with its shares up 37% from their offer price.

Still, the $13.4 billion raised by 90 companies on US exchanges since Jan. 1 is down from a total of $18.8 billion at this point last year and is only about 6% of the total as of July in 2021, which set an all-time record for IPOs, according to data compiled by Bloomberg.

Oddity, whose brands include Il Makiage and online-only wellness brand SpoiledChild, is making money. It had net income of $21.7 million on net revenue of more than $324 million in 2022, an increase from $13.9 million on more than $222 million in revenue the previous year, according to the filings.

Founder and Chief Executive Officer Oran Holtzman and L Catterton are selling about 10.4 million of the shares in the IPO, the company said in the filings. Holtzman will own almost all of Oddity’s Class B shares, giving him about three-quarters of the voting power.

The offering is being led by Goldman Sachs Group Inc., Morgan Stanley and Allen & Co. Oddity plans for its shares to begin trading Wednesday on the Nasdaq Global Market under the symbol ODD.

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