When LED facial experts Beauty Tech listed in London last week, it wasn’t just its customers who were sporting a youthful glow. The Stock Exchange itself seemed to be putting its best face forward thanks to an exciting new member.
And the beauty firm is not the only company coming to market. Companies including digital bank Shawbrook and food firm Princes have announced they’re planning to float – a relief to all of us hoping for some new stories to buy into.
Investing in a company at the beginning of trading often pays off. Dan Coatsworth at AJ Bell calculates that someone who bought into the 12 companies that went public in London in 2025 before Beauty Tech would have made 10.9 per cent on average so far.
There’s often a ‘bump’, he explains, as companies choose to position themselves at a bargain price to encourage early adopters to snap them up and make a bit of extra cash.
It doesn’t always work. While investors in health data business Medpal AI are celebrating a 35 per cent gain since floating, defence consultant RC Fornax has left initial buyers nursing a 66 per cent loss.
There are plenty of rumours about who will be next to launch on the London stock market, with travel group LoveHolidays, fintech payment group SumUp and Norwegian software group Visma all names in the frame.
Whether you’re more interested in acne zappers, specialist banking or Branston pickle, these new investment opportunities for UK investors could deliver some zing.
Beauty Tech
A British success story, Beauty Tech sells LED face masks, app-connected electric zit zappers and laser hair removal tech.
CEO and founder Laurence Newman is targeting them both at the younger end of the market, who he says use the tech to stave off ageing, as well as older people who are becoming accustomed to using technology to improve their skin.
British success story: Beauty Tech sells LED face masks, app-connected electric zit zappers and laser hair removal tech
Its positioning seems to be working. The company posted a 27 per cent increase in sales in the first half of this year, with underlying earnings of £22.9 million.
Shares in the business were priced at initial public offer (IPO) at 271p, and closed at 276p last week, giving those who had got in at the beginning a small profit already.
LED masks are popular, and while Newman acknowledges his is a premium product, many people are prepared to shell out for a solution they can use at home rather than at a pricey salon.
Beauty Tech has been growing faster than the rest of the beauty sector, particularly in the US, UK and Germany.
The publicity has been good, too. As the first business of its kind to float in London, it should bring more customers to Beauty Tech’s door. Newman is excited by further possibilities, such as using microcurrents to provide non-invasive treatments for lips.
The wrinkle on Beauty Tech’s countenance is the competition.
When giants such as L’Oreal announce they are focused on ‘becoming a beauty tech powerhouse’, you know interest in the company’s space will be intense.
For those seeking dividends, it will be a while before Beauty Tech pays out, but if you believe in this part of the market the shares are worth a look for the long term.
Traded on: Main market Ticker: TBTG Contact: thebeautytechgroup.com
Princes
There’s many a slip between cup and lip, but Princes’ announcement of its flotation intentions last week may give us a chance to buy into some of the big names we put into our shopping baskets.
From Napolina tomatoes to Batchelors soup and Princes tuna, the company owns some of our best-known brands and produces others under licence.
Despite being owned by Milan-listed Newlat, Princes is headquartered in Liverpool and recently underscored its commitment to the city by buying the iconic Liver Building.
Family favourite: From Napolina tomatoes to Batchelors soup and Princes tuna, Princes owns some of our best-known brands
British pride is all very well. The question is whether, when purse-strings are tight, people will put their love of Branston pickle above their need to bring down the shopping bill. The company believes they will, stating that it is ‘largely insulated from consumer downtrading’ because it is spread across sectors and segments.
Assuming the float goes ahead, small investors will be able to take a bite of Princes. The company says it will offer shares through RetailBook, which works with wealth managers and investment platforms such as Hargreaves Lansdown, AJ Bell and Interactive Investor, to offer small buyers the same terms as big institutions.
The company is expected to be valued at £1.5 billion and, depending on final valuation, is a good bet for those looking for a secure, cash-generative business with a commitment to the UK.
Expected to trade on: Main market Contact: princesgroupinvestors.com
Shawbrook
Companies returning to the UK stock market are few and far between, but specialist bank Shawbrook may become one of this select club.
The bank, which specialises in business lending and more complex mortgage products, went private in 2017. It was valued then at £868 million but is now expected to achieve a £2 billion valuation if its float is successful.
Shawbrook’s growth is down to its success in target areas. Almost 90 per cent of the traditional banking market is off limits to the company, which chooses to deal with small and medium businesses, self-employed home buyers and landlords instead.
Comeback: Shawbrook, which specialises in business lending and more complex mortgage products, went private in 2017
The bank recently bought ThinCats, a specialist lender for small businesses, and has a plan to grow its loan book – the amount of money it is lending out – to £30 billion by 2030 from £17 billion.
Shawbrook is expected to make shares available to retail investors, and there’s already a page on the RetailBook website to register your interest (retailbook.com/eitf/shawbrook).
There are certainly compelling reasons to take a look. For a start, the company makes plenty of cash and is determined to return some of this to shareholders.
There are risks, too, with Shawbrook having been involved in a court case over car finance compensation, announced by the Financial Conduct Authority recently – although the company has said it expects the potential liability to be immaterial.
An economic downturn may affect its customers’ ability to repay loans, although the business points out it has been through storms such as Brexit and Covid without seeing slowing growth.
There will be more information on Shawbrook’s initial public offering in coming weeks, so it’s sensible to sign up to notifications to find out more about its valuation as soon as possible.
Expected to trade on: Main market Contact: retailbook.com/eitf/shawbrook
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