Piercing retailer SkinKandy is preparing to list on the ASX next week after upsizing its initial public offering to $160 million, as the company pushes ahead with plans for rapid international expansion despite ongoing volatility across retail and equity markets.
The company is scheduled to begin trading on May 21 under the ticker SK1, with shares priced at $2.20 each — towards the upper end of the indicative $2.05 to $2.25 range — valuing the business at about $245 million.
SkinKandy, which operates more than 100 piercing studios across Australia and New Zealand, said it would raise $20 million in fresh capital as part of the deal, while existing shareholders including private equity backer Whiteoak Capital reduce their holdings.
The IPO was reportedly covered early in the bookbuild process, prompting the offer size to increase from an earlier target of $149 million. The business will list with a free float of roughly 65%, while remaining shareholders will be subject to voluntary escrow arrangements.
Expansion plans drive growth pitch
Founded as a specialty body piercing chain, SkinKandy has increasingly positioned itself as a lifestyle and jewellery retailer targeting younger consumers, particularly Gen Z and millennials. The company performs piercings across dozens of body locations and sells associated jewellery and aftercare products through its store network.
Management is pitching the company’s growth strategy around offshore expansion, with plans to enter the United States market first before targeting the United Kingdom and South Africa.
Chief executive Dain Friis — a former executive at Lovisa — has outlined ambitions to grow the network from its current footprint to more than 500 stores globally over time.
The company is also attempting to differentiate itself from broader fashion jewellery chains by placing piercing services at the centre of its retail model. Unlike some competitors that offer piercing as an add-on service, SkinKandy has promoted the category as a core part of the customer experience, tied to trends such as “earscaping” and curated multi-piercing styling.
Retail float tests investor appetite
According to details disclosed during the IPO process, the business is forecasting FY26 earnings before interest, tax, depreciation and amortisation of about $23.5 million on forecast revenue approaching $90 million. That implies an EBITDA margin of roughly 27%.
At the IPO price, the valuation equates to about 10.8 times forecast EBITDA and nearly 28 times forecast FY26 earnings.
The IPO comes at a challenging time for consumer-focused listings, with broader retail sentiment remaining uneven as investors weigh softer discretionary spending conditions and continued market volatility.
While SkinKandy has attracted strong backing during the bookbuild, the company ultimately listed at a valuation well below some of the earlier figures discussed before the formal offer launch. Investor scrutiny around retail earnings has also intensified in recent months, particularly after weakness across listed fashion and accessories stocks including Lovisa.
Still, SkinKandy’s advisers appear to have found sufficient investor appetite for a differentiated retail growth story at a time when several other high-profile IPO candidates have delayed or reconsidered listing plans amid uncertain market conditions.
The company’s listing will also test broader investor appetite for consumer-facing growth businesses after a relatively subdued period for ASX retail floats.
Joint lead managers and underwriters to the offer are Barrenjoey Markets and Morgans Corporate.