By DITA DE BONI
The country's largest chain of beauty clinics is understood to be set to list on the new capital markets board.
The Newmarket-based CACI chain, specialising in non-surgical face lifts, hair removal and collagen injections, will open an offer tomorrow, and is aiming for a November 28 listing.
The company is seeking to raise $600,000 with the issue of 1.2 million 50c shares. A successful float will give the public a 60 per cent stake in the company.
The CACI group will, as its key purchase, acquire for shares Micromode Medical, which owns the Newmarket and Wellington CACI clinics.
A further 16 outlets have been franchised to other operators.
CACI holds around 3.5 per cent of the total market for beauty therapy, hair removal, vein work and appearance procedures that is worth more than $170 million a year.
The chain combines traditional beauty therapy treatments such as facials, with what it describes as "non invasive" appearance procedures.
Two of those are Botox and collagen injections.
Botulinum toxin A, or Botox, as it is known commercially, paralyses local facial muscles, eliminating wrinkles caused by muscle contractions.
Collagen is injected into skin to "fill" lines and wrinkles caused by acne scars, crow's feet and laugh or frown lines.
The company imports and distributes beauty therapy equipment, including hair and tattoo-removing lasers.
David Smith, who founded the first CACI clinic with his wife in Newmarket, says 700 clients came to the clinic in 1994, a number that has grown to 9000 this year.
He says raising money through capital markets is a good way to equip the chain's 18 outlets, and the move will enhance the credibility of the business.
"If we could get decent amounts of funding, we could afford equipment in all our chains at once, and roll-out services, advertising and training all at once.
"We know that consumers are looking for cosmetic procedures at an unprecedented rate.
"For example, in 1998, we were bringing in 4 or 5 vials of Botox every month. Now we bring in up to 20."
The group has a turnover of $4.3 million and pre-tax earnings of $770,000. It is predicting revenue will reach $6 million by 2002.
More franchises are planned for Auckland, Gisborne, Hutt Valley and Invercargill. The company is also looking at moving into more "invasive" procedures such as liposuction.
CACI will be the seventh company to seek money through the stock exchange's new capital market. The sixth, Submarine Australasia, is due to list today.
After listing, companies must make a key purchase within 18 months.
Beauty clinic to grace capital markets board
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