07.16.21
Shrugging off a sharp decline in sales attributable to the pandemic, European Wax Center has filed for an IPO. The company filed a registration statement on Form S-1 with the US Securities and Exchange Commission. It applied on July 13 to publicly list its stock on the Nasdaq Global Select Market under ticket symbol “EWCZ.” The number and prices of shares were not specified. European Wax Center, Plano, Texas, uses its proprietary blend called ComfortWax and sells products in the skin care, body care and brow categories.
The move comes after a difficult year for European Wax Center. Sales fell 36% in 2020 to $469 million. But a comeback is underway. For Q1, 2021, sales increased more than 10% to $36.7 million. In addition, European Wax Center added dozens of locations in 2020, bringing the door count up to 808.
The company plans to use the IPO proceeds to contribute to EWC ventures, “purchase EWC Ventures Units and corresponding shares of Class B common stock from certain of the EWC Ventures post-IPO members,” and “repay $88.7 million aggregate principal amount of the outstanding loans under our Senior Secured Credit Facility, along with cash on hand,” according to the filing.
The move comes after a difficult year for European Wax Center. Sales fell 36% in 2020 to $469 million. But a comeback is underway. For Q1, 2021, sales increased more than 10% to $36.7 million. In addition, European Wax Center added dozens of locations in 2020, bringing the door count up to 808.
The company plans to use the IPO proceeds to contribute to EWC ventures, “purchase EWC Ventures Units and corresponding shares of Class B common stock from certain of the EWC Ventures post-IPO members,” and “repay $88.7 million aggregate principal amount of the outstanding loans under our Senior Secured Credit Facility, along with cash on hand,” according to the filing.