A flotation would crystallise big paper windfalls for sibling founders Arron and David Gabbie, Sky News learns.
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An online Beauty business founded by two brothers 20 years ago is aiming to follow in the footsteps of The Hut Group by exploring a stock market listing that would hand its sibling founders a big paper windfall.
Sky News has learnt that Beauty Bay, which was established by Arron and David Gabbie, is working with the investment bank GCA Altium on a review of its strategic options.
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City sources said that a flotation was a likely route for the company following the surge in the valuation of THG Holdings, The Hut Group’s parent company, since its September stock market debut.
Beauty Bay sources hard-to-find brands such as Anastasia Beverly Hills and The Ordinary and sells them to its fast-growing customer base.
It describes itself as one of Europe’s leading online beauty platforms.
Based in Manchester – like THG Holdings – it has seen sales soar during the coronavirus pandemic, providing it with an ideal launchpad for an initial public offering.
Sources said the accelerating shift in beauty and skincare product sales to digital channels had left Beauty Bay ideally placed to capitalise.
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If it does proceed with a listing, it is unlikely to take place until the second half of next year, according to one insider.
The Gabbie brothers are the company’s main shareholders, and have built its online presence in recent years through social media and influencer marketing.
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Sales are understood to have grown by more than 50% during the COVID-19 crisis to £120m on an annualised basis.
Beauty Bay’s potential valuation was unclear on Tuesday, although one source suggested it was likely to be in the low hundreds of millions of pounds.
It is understood to be examining other options, including an outright sale.
News of its potential float adds Beauty Bay to the list of technology-enabled companies which are queuing up to go public in London next year, with Deliveroo, Moonpig and Music Magpie all drawing up plans for IPOs.
Beauty Bay and GCA Altium declined to comment.
