Bare Escentuals made its stock market debut Friday, with shares opening at $28 on the Nasdaq Global Select Market, up 27.3 percent from its initial public offering price. Shares closed Friday at $27.15.
The San Francisco-based mineral makeup firm priced its IPO at $22 a share, above its forecasted $15 to $17 range. It raised $352 million by offering 16 million shares, and plans to use the net proceeds from the offering to repay a portion of its debt and pay a fee related to the company’s management agreements with Berkshire Partners and JH Partners. The shares trade on the Nasdaq under the symbol “BARE.”
The firm — which has a portfolio that includes Bare Escentuals cosmetics, I.D. Bareminerals skin care and the professional skin care line MD Formulations — continues to dig its heels into the increasingly competitive beauty industry. It generates $187 million in sales, selling its products via infomercials; in some 290 retail locations, including Sephora and Ulta; in 900 spas, and through its 30 retail boutiques, which averaged net sales of $1,400 per square foot for the fiscal year ended June 1, 2006.
Its magnetic frontwoman and president and chief executive officer Leslie Blodgett has amassed legions of devotees. As a result, sales continue to surge. Over the last five fiscal years, sales have increased 87.5 percent on a compound annual basis.