Medirom Healthcare Technologies, a Japan-based healthcare salon operator backed by advertising agency CCC Marketing, has set the terms for an initial public offering that will raise $19.2m at the top of its range.
The company plans to issue 1.2 million shares on the Nasdaq Capital Market at a price range between $14 and $16.
Founded in 2000, Medirom manages more than 290 healthcare-focused relaxation salons in Japan, mostly under its Re.Ra.Ku brand. It expanded into the health technology sector in 2015 and has launched a health monitoring smartphone app and self-charging fitness tracker.
Medirom’s revenue stood at ¥2.3bn ($20.9m) for the nine months ending 30 September 2020, generating a net loss of ¥562m ($5.2m). It will use the proceeds from the offering to fund its operations and other expenses through 2021.
The company was negatively impacted by the covid-19 pandemic during the first half of 2020, and as a result secured a loan agreement and received subsidy funding from the Japan government. It raised $2.9m from investors including CCC Marketing in 2017, though the corporate’s stake is sized below 5% according to the IPO filing.
Maxim Group is book-running manager for the IPO, and the underwriters will have a 45-day option to buy up to 180,000 additional shares, which could potentially lift it to more than $22m.