How to buy shares in Adore Beauty

The Adore Beauty IPO is expected to be one of the biggest of the year. Here's how to invest.

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Buckle up investors, Adore Beauty has listed the Australian Securities Exchange (ASX) in what is one of the country's biggest IPOs of 2020.

Adore Beauty is an Australian ecommerce website that offers global and domestic beauty and personal care products, some of which are exclusive to Adore. To date, it has a customer base of more than 590,000 and features 11,000 products.

The company raised $270 million with an offer price of $6.75 per share. It went public on 23 October under the ticker code ABY.

How to buy shares in Adore Beauty

To invest in an IPO, you'll need to be registered with a participating broker. This can be tricky for retail investors because there are usually only a few firms allocated for each IPO and they are typically full-service stockbrokers.

Your other option is to buy shares in Adore Beauty once it goes public. To do that, you'll need to be signed up to a share trading platform:

  1. Compare share trading platforms. To buy shares in an Australian company, you'll need to sign up to a platform with ASX market access. If you're a beginner, look for a platform with low commissions and investment tools to track your portfolio. Narrow down top brands with our comparison table below.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Adore Beauty. Find the stock by name or ticker symbol: ABY. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Adore Beauty stock reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. Weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Adore Beauty, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Adore Beauty. Optimise your portfolio by tracking how your stock, and even the business, performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

What we know about the Adore Beauty IPO

Adore Beauty's IPO was underwritten by lead managers Morgan Stanley, UBS, and Shaw and Partners and it listed on the ASX on 23 October under ABY. The offer raised $269.5 million at a share price of $6.75.

At this stage, Adore Beauty doesn't expect to pay a dividend in the near future, making this a growth play.

Adore Beauty IPO key numbers
Offer price$6.75
Dividend yield0%
Total number of shares available under the offer33.9 (millions)
Proposed ASX codeASX: ABY
Target market cap$635.3 million
Retail offer opens14 October
Retail offer closes21 October
Settlement26 October
Expected listing on ASX23 October
Expected despatch of holding statements29 October

Source: Adore Beauty prospectus

Adore Beauty says it will use the capital raised in the IPO to fund its growth strategy, including the launch of a new app.

Company history

Adore Beauty was launched in 2000 by Kate Morris and James Height and is headquartered in Melbourne, Australia. Its website hosts 11,000 products from over 230 global brands.

In 2006 the company partnered with its first global brand, Clarins. In 2016, it launched Beauty IQ, an integrated content, news, reviews, marketing and ecommerce platform. In 2019, Adore Beauty launched its dedicated New Zealand website.

Although it opened a store with Chinese marketplace Alibaba in 2016 as a way to enter the Chinese market, it shut its doors on the platform six months later citing strategic changes.

Adore Beauty balance sheet

Adore Beauty's main source of revenue is through the sale of beauty and personal care products online.

The good news is that the company is clearly growing and its bottom line has particularly benefited from the rise in demand for online shopping during COVID-19.

In FY20, the Company generated $121.1 million of revenue, up from $52 million in FY18 and the company has also been profitable over the last 12 months. Estimated net profit (NPAT) in FY20 was $2.5 million, up from just $500,000 the year before.

Adore Beauty is a well established brand in the Australian market with a fairly fast growing customer base. Over the last four years, it has seen active customer numbers grow 278% to 590,000.

Compare ASX share trading platforms

To buy stock in Adore Beauty once it lists, you'll need to open a brokerage account with access to ASX stocks. Compare your options using the table below to find the best fit.

Compare share trading platforms

The value of your investments can fall as well as rise and you may get back less than you invested. Past performance is no indication of future results.
Name Product Standard brokerage fee Inactivity fee Markets
Superhero share trading
AUD $5
ASX shares, ETFs
Pay zero brokerage on all Australian ETFs.
Trade ASX stocks with a flat $5 commission fee and a low minimum investment of just $100.
ThinkMarkets Share Trading
AUD $8
ASX shares, ETFs
Limited offer: Get 5 free ASX trades when you open a new account with ThinkMarkets before June 30, 2021 (T&Cs apply).
Buy and sell CHESS sponsored ASX shares with $0 brokerage on your first 5 trades. Only $8 flat fee brokerage thereafter, plus enjoy free live stock price data on an easy to use mobile app.
Bell Direct Share Trading
AUD $15
ASX shares, mFunds, ETFs
⭐ Finder Exclusive: Get 5 free stock trades and unlimited ETF trades until July 31, 2021 when you join Bell Direct.
Bell Direct offers a one-second placement guarantee on market-to-limit ASX orders or your trade is free, plus enjoy extensive free research reports from top financial experts.
IG Share Trading
Finder Award
IG Share Trading
AUD $8 or 0.1%
$50 per quarter if you make fewer than three trades in that period
ASX shares, Global shares
$0 brokerage for US and global shares plus get an active trader discount of $5 commission on Australian shares.
Enjoy some of the lowest brokerage fees on the market when trading Australian shares, international shares, plus get access to 24-hour customer support.
Saxo Capital Markets (Classic account)
AUD $6.99
ASX shares, Global shares, Forex, CFDs, Margin trading, Options trading, ETFs
Acess 19,000+ stocks on 37 exchanges worldwide
Low fees for Australian and global share trading, no inactivity fees, low currency conversion fee and optimised for mobile.
CMC Markets Stockbroking
AUD $11 or 0.1%
ASX shares, Global shares, mFunds, ETFs
$0 brokerage on global shares including US, UK and Japan markets.
Trade up to 9,000 products, including shares, ETFs and managed funds, plus access up to 15 major global and Australian stock exchanges.

Compare up to 4 providers

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs comes with a higher risk of losing money rapidly due to leverage. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

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