Thakral Corporation Set for Double-Digit NAV & EPS Surge After Beauty Tech Group’s £300 Million London IPO

Key Highlights

• The Beauty Tech Group (TBTG), in which Thakral holds a 9.55% pre-IPO interest, has priced its IPO on the London Stock Exchange at £2.71 per share, targeting a market capitalisation of approximately £300 million.
• The IPO will raise £29 million in primary capital and enable Thakral to divest part of its stake for S\$13.1 million, delivering an IRR over 100% since its initial investment in 2023.
• Post-listing, Thakral’s Net Asset Value (NAV) is projected to jump by 10% to S\$2.34 per share, and Earnings Per Share (EPS) is expected to rise 26% to S\$1.08 per share.
• Thakral will retain a substantial 6.04% stake (6.68 million shares) in TBTG, subject to a lock-up period and orderly market arrangements.
• Anticipated one-off gain of S\$28.5 million from the IPO-related disposal and revaluation, plus improved liquidity and gearing ratio.
• The proceeds of TBTG’s IPO will be used to pare down debt, strengthening its balance sheet and long-term growth prospects.

In-Depth Report

SGX Mainboard-listed Thakral Corporation Ltd has announced a transformative development for shareholders, following the successful pricing of its investee company’s IPO on the London Stock Exchange. The Beauty Tech Group plc (formerly CurrentBody.com Ltd), a UK-based leader in at-home beauty technology, will raise £29 million through its public offering at £2.71 per share, achieving a starting market capitalisation of around £300 million.

Strategic Partial Disposal with High Returns

Thakral will divest approximately 2.86 million shares (2.86% of its holding) in TBTG, generating about S\$13.1 million in cash proceeds. This sale reflects an internal rate of return (IRR) exceeding 100% since Thakral’s 2023 investment. The capital realised from this partial disposal will be redeployed to fund new growth opportunities, further strengthening Thakral’s earnings potential and liquidity.

Significant Uplift in NAV and EPS

The remaining 6.04% stake (6,683,868 shares) in TBTG will be marked to market at the IPO price, and Thakral will reclassify its investment in accordance with accounting standards. This results in a material uplift for shareholders:

• NAV per share is forecasted to rise from S\$2.12 to S\$2.34—an increase of 10%.
• EPS is expected to jump from S\$0.86 to S\$1.08—a 26% increase.
• Gearing ratio improves from 0.27 to 0.25, reflecting a stronger balance sheet.

Thakral will recognise a one-off gain totaling S\$28.5 million, from both the disposal and the revaluation of its remaining shares, after costs and tax. This fair value gain will be reflected in its FY2025 financial results.

Lock-Up and Orderly Market Arrangements

Shareholders, including Thakral, are subject to a lock-up period starting from the LSE listing date until four weeks after the publication of TBTG’s audited accounts for the year ending 31 December 2025, with additional orderly market arrangements for six months thereafter (subject to exceptions). This limits immediate further disposals, ensuring market stability and potentially underpinning share price performance.

The Beauty Tech Group’s Growth Trajectory

TBTG is a global leader in at-home beauty devices, with three premium brands: CurrentBody Skin, ZIIP Beauty, and Tria Laser. The company is leveraging technologies such as LED light, RF, microcurrent, and laser therapy—traditionally used in professional clinics—for consumer products sold via D2C e-commerce and international retail channels. The IPO proceeds will primarily be used to repay £22.5 million in bank debt, enhancing TBTG’s financial health and supporting its expansion.

Thakral’s Strategic Vision and Portfolio Strengthening

Thakral’s CEO, Mr. Inderbethal Singh Thakral, emphasised the milestone nature of this IPO, highlighting the group’s initial entry via a joint venture in China and subsequent direct investment in TBTG. The listing validates TBTG’s business model and management, and Thakral remains committed to supporting its further global growth.

Beyond beauty tech, Thakral maintains a diversified portfolio across Australia (GemLife Communities Group), landmark commercial buildings in Japan, and exclusive distribution of DJI drones in South Asia, alongside strategic investments in new-economy ventures.

What Shareholders Must Know

• The uplift in NAV and EPS is price-sensitive and likely to positively impact Thakral’s share value.
• The realised cash proceeds and future value of the remaining stake provide significant capital for reinvestment and potential dividends.
• Lock-up agreements limit immediate further disposals, stabilising market exposure.
• The one-off gain will be reflected in FY2025 results, impacting profitability and possibly share price momentum.
• TBTG’s strengthened balance sheet and growth prospects post-IPO may further enhance Thakral’s investment value.

Conclusion

Thakral’s partial exit and revaluation of its stake in TBTG not only deliver immediate gains and improved financial metrics but also underscore the group’s strategic acumen in identifying and nurturing high-growth investments. This landmark transaction is price-sensitive and holds the potential to move Thakral’s share price as the uplift is crystallised in upcoming financial reporting periods.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with professional advisors before making investment decisions. The information is based on official press releases and is subject to change without notice.

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