Thakral Corporation Unlocks \$28.5 Million Value from Beauty Tech Group IPO: Major Cash Inflow and Asset Revaluation Set to Strengthen Balance Sheet

Key Highlights

• Thakral Corporation Ltd announces successful IPO pricing and offer size for The Beauty Tech Group plc (formerly CurrentBody.com Ltd) on the London Stock Exchange.
• Thakral will receive approximately £7.8 million (S\$13.5 million) in cash from partial disposal of shares, with a post-IPO holding revalued at £18.1 million (S\$31.5 million).
• Total uplift to Thakral’s asset value from the transaction estimated at £16.4 million (S\$28.5 million).
• Transaction classified as a discloseable transaction under SGX rules, with significant positive effects on net tangible assets (NTA), earnings per share (EPS), and group gearing ratio.
• Net proceeds to be redeployed for new growth opportunities, strengthening Thakral’s financial position and liquidity.

In-Depth Analysis for Investors

Thakral Corporation Ltd has made a major announcement regarding its investment in The Beauty Tech Group plc, which has just priced its initial public offering (IPO) at £2.71 per share, valuing the company at approximately £300 million. Thakral, via its subsidiary Thakral Lifestyle Pte Ltd, held a pre-IPO effective interest of 9.55% in The Beauty Tech Group and participated in the IPO through a partial disposal of its shares.

Transaction Details

• Thakral agreed to sell 2,864,515 shares in The Beauty Tech Group (2.86% pre-dilution interest) as part of the IPO, generating gross proceeds of about £7.8 million (S\$13.5 million).
• Post-IPO, Thakral will retain 6,683,868 shares in The Beauty Tech Group, which at the IPO price, are valued at £18.1 million (S\$31.5 million).
• The transaction results in a total uplift of £16.4 million (S\$28.5 million) to Thakral’s asset base, accounting for costs and potential tax impacts.

Financial Impact and Shareholder Sensitivities

• Net Tangible Asset (NTA) per Share: Increases from S\$2.12 to S\$2.34 post-disposal and revaluation.
• Earnings per Share (EPS): Rises from 86.04 S\$ cents to 108.05 S\$ cents.
• Gearing Ratio: Improves from 0.27 to 0.25, reflecting stronger equity and lower leverage.
• Book Value vs. Sale Proceeds: Thakral’s book value for its pre-IPO shares was S\$16.1 million; the partial disposal alone generated S\$8.3 million above book value for the shares sold.
• Proceeds Use: Net proceeds (~S\$13.1 million after tax/expenses) will be redeployed into new investments for earnings and long-term growth, potentially boosting future returns.

Strategic Rationale

Thakral initially invested in The Beauty Tech Group in 2018 via a China-focused joint venture, later converted to a direct equity stake. The IPO and partial disposal allow Thakral to unlock significant capital appreciation while maintaining a substantial stake in the now-public company, offering both liquidity and future upside from retained shares.

Regulatory and Disclosure Aspects

• The transaction is classified as a discloseable transaction under SGX rules due to its relative size compared to group assets, profits, and market capitalization.
• No new directors or service contracts are proposed as a result of this disposal.
• Directors and controlling shareholders (other than through shareholdings) have no direct interest in the disposal.

Important Shareholder Notices

• This announcement is price sensitive: The size and nature of the uplift could materially affect Thakral’s share price, NTA per share, and EPS metrics.
• Liquidity and Growth Prospects: The redeployment of proceeds into new investments could be a catalyst for further share price appreciation if management executes well.
• Ongoing Updates: Thakral will continue to update shareholders on any material developments, with the Board actively monitoring IPO progress and regulatory compliance.
• Caution Advised: Shareholders are urged to read future announcements carefully and consult financial advisors before making trading decisions.

Potential Market Movers

This transaction represents a material value realization event for Thakral Corporation, unlocking cash and boosting asset values with potential future upside. Investors should monitor further announcements and consider the positive impact on the company’s financial strength, investment capacity, and growth prospects.

Disclaimer: This article is prepared for informational purposes only and does not constitute investment advice or an offer to buy or sell any securities. Investors should consult with their professional advisors and refer to official company disclosures before making any investment decisions. The information herein is based on company announcements and may be subject to change or revision.

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