Brazilian Beauty Startup Targets IPO

Intercosmetic Holding, a shell company founded last year to make investments in Brazil’s health and beauty sector, has started the registration process to become a public company, and plans to raise funds privately before en eventual public listing. It is targeting consolidation in the beauty salon industry through acquisitions and organic growth. “This type of chain doesn’t exist in Brazil,” says Alexandre Azambuja, VP and IR director, noting that Brazil has the fourth largest cosmetic market in the world. After filing this week to register with the CVM as a public company, Intercosmetic first plans to raise BRL55m through three private placement rounds. This fundraising would eventually be followed by an IPO, perhaps on the little-used Bovespa Mais, set up for small cap listings. The startup based in the southern state of Parana is in the process of choosing banks, he says.