(Bloomberg) -- Japanese personal-care business FineToday Holdings Co. said it will postpone its planned Dec. 17 listing, citing market conditions.
The CVC Capital Partners Plc-backed company was expected to debut on the Tokyo Stock Exchange’s Prime Market, with an estimated market value of ¥219.4 billion ($1.5 billion) based on the indicative price. It was expected to set its price range Monday and offering price on Dec. 9.
The company will make a decision whether to resume after reassessment, it said in a statement Monday.
“The valuation wasn’t that cheap to investors,” as major IPOs including memory maker Kioxia Holdings Corp. and cooking recipe app operator Dely are in the pipeline for this month, said Naoya Kawai, chief investment officer at Japanese asset management firm Fundnote.
Given FineToday’s focus on brands in the most competitive environment of the cosmetics sector, it’s difficult to map strong growth, Kawai said.
The indicative price of ¥2,150 was “unattractive” as the EV/Ebitda of 10.1x is only a 6% discount from the 9.6x median ratio of peers, Arun George, an analyst at Global Equity Research Ltd. who publishes on Smartkarma, wrote in a note dated Nov. 26.
FineToday was established in 2021 after being spun-off from Shiseido Co.’s personal-care products business. Shiseido earlier this year sold its 20% stake in FineToday to Oriental Beauty Holding, an entity backed by CVC, for an undisclosed amount.
--With assistance from Dave Sebastian.
(Adds analyst comments.)
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