PETALING JAYA: Main Market-bound InNature Bhd is looking to raise a total of RM120.6 million from its initial public offering (IPO), split between gross proceeds of RM50.4 million from the public issue and RM70.2 million from the offer for sale.
The IPO will entail a public issue of 74.07 million new shares and an offer for sale of RM103.2 million existing shares at an offer price of 68 sen each.
The counter is expected to be listed on Feb 20.
InNature is the retailer and distributor for The Body Shop products in Peninsular Malaysia, Sabah, Labuan, Vietnam and Cambodia, via subsidiaries Rampai Niaga, TBS Vietnam and Green Cosmetics respectively.
According to its prospectus filed with Bursa Malaysia, the group currently has an 11% market share in the cosmetics personal care segment in Malaysia, based on total market sales of RM1.48 billion in 2018.
It currently has 89 stores in Peninsular Malaysia, Sabah and Labuan, 34 stores in Vietnam and one store in Cambodia. It also has an online presence, distributing The Body Shop products via its own websites as well as through third party online marketplaces such as Hermo, Tiki and Lazada.
After its IPO, the group intends to continue to grow its revenue and strengthen its leadership in the mono-brands beauty industry and the naturals beauty market.
For Malaysia, InNature plans to drive same-store sales growth through an omnichannel strategy. It aims to expand its brand portfolio by developing a new business with the Natura brand.
“We will be focusing on an omnichannel strategy heavily focused on Natura’s business model of social commerce and e-commerce, which will be supported by a digital platform as well as physical stores for showrooming and raising awareness through customer experience,” it said.
The Natura brand comes under Natura Cosmeticos SA, a global brand that owns The Body Shop and Aesop brands of personal care products worldwide.
For Vietnam and Cambodia, the group will focus on expanding The Body Shop retail network and brand awareness. Between 2020 and 2022, InNature plans to open six stores every year in Ho Chi Minh City and Hanoi.
“By end 2021, we plan to open up five more points of sale in Cambodia, subject to the availability of locations that will suit The Body Shop positioning,” it said.
For the financial period ended Sept 30, 2019 InNature posted a profit after tax of RM22.24 million on revenue of RM138.2 million.
InNature’s shareholders with substantial direct equity are Etheco (56.98%), BluPlanet (36.32%), Pelagos (3.35%) and Primarium (3.35%).