Oddity Tech began public trading at $49.10 per share, which gives it an estimated market worth of $2.8 billion. The stock was initially priced at $35 per share, exceeding the previously given range of $32 to $34. By virtue of the offering, Oddity and its shareholders (L Catterton included) brought in roughly $424 million.
Oddity Tech, the beauty and wellness company employing AI to develop cosmetics and former Israeli defense officials, skyrocketed 40% Wednesday as the IPO market ramped up. Its stock opened at $49.10 per share after pricing its IPO at $35 per share the prior night, greater than the range of $32 to $34. The direct-to-consumer platform behind Il Makiage and Spoiled Child brands sold 12.1 million shares, amassing an approximate market valuation of $2.8 billion. Oddity, backed by L Catterton private equity, raised approximately $424 million. The stock trades on Nasdaq as "ODD." Co-founder and CEO Oran Holtzman expressed his joy, saying a public offering is the milestone in building "something huge," and met enthusiastic investors and shared their vision after months of toil. Oddity aims to disrupt the traditional beauty market with its proprietary technology (which includes tools from ex-defense officials) and data collected from millions of users; additionally, it has grown profitably against its direct-to-consumer peers. Its global CFO Lindsay Drucker Mann underscored the company's financial profile and "unique model" with tech at its core. In the three months to March 31, Oddity recorded $165.7 million in sales and $19.6 million in net income, compared to the year-ago totals of $90.4 million and $3 million. Fiscal 2022 saw sales of $324.5 million and net income of $21.7 million. Gross margins rose 4 percentage points to 71% in the same period. The company has doubled in terms of gross sales annually since 2018. Coincidentally, 40% of Oddity's global head count is technologists poached from the Israeli Defense Forces. Most recently, the firm invested over $100 million to procure biotech startup Revela and establish a U.S.-based lab to craft novel molecules with AI to use in their brands. It will deploy the IPO funds to further invest in data and tech to fabricate AI-backed products.
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