E.L.F Cosmetics Brand Leads Big IPO Week

cat_lipsLow-priced cosmetics maker e.l.f Beauty managed to raise roughly $141 million in its IPO, which launched at a higher target range than expected, Wednesday. The Oakland-based company has been prepping to start trading on the New York Stock Exchange, on Thursday, under the symbol ELF.

The company said that it initially sold 8.3 million shares—at $17 a share—in this offering. This price is higher than was expected, which was between $14 and $16 per share.

As such, ELF opened at $24, today, which is up 41 percent from the IPO price, late Wednesday. Now the stock is trading at 26.11, which is up more than 53 percent.

E.L.F. Is shorthand, of course, for Eyes-Lips-Face and is one of the fastest growing companies in 2015, turning major profits last year. If you aren’t familiar, you can find these cosmetics in both Walgreens Boots Alliance (WBA) and CVS (CVS).

Many companies, these days, save on costs (to boost profit margins) by utilizing external employees (kind of like sales representatives) but e.l.f. Has found success through this model mostly by engaging consumers on Instagram, Facebook, and Twitter as well as through videos on Google’s YouTube, where women can post videos and reviews of their products. More importantly, e.l.f. closely monitors these videos to gauge the direction in which they should move.

In addition to this, though, the cosmetics firm also tests its new products via its website and then also studies sales trends and follows online commentary. Finally, the company uses its wide retail distribution channels like WalMart (WMT), Target (TGT), CVS Health (CVS) and Gap (GPS) subsidiary Old Navy.

But while ELF has had a great year, this week’s busy IPO launch was actually only part of the busiest IPO week this year. For example, The Trade Desk (TTD) opened with a 67 percent debut—at 30.10—on Wednesday. This is a fast-growing and profitable ad-tech firm which had also priced out above target—at 18—late on Thursday, rising 2 percent in trading that day.

In addition, Wednesday, Novan (NOVN) also shot up 65 percent to 18.10, still up about 18 percent on Thursday. This acne treatment company had only priced at 11, which was actually at the low ends of its expected price range.

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