Health and skincare microcap EZZ Life Science rocketed 130% on its ASX debut, closing at $1.16 up from its 50 cent IPO price.
EZZ develops, produces, and distributes consumer health products under its own brand, to retailers in Australia and New Zealand as well as consumers in China, with plans to continue expanding to other international markets.
It is also an exclusive wholesale distributor of a range of skincare products under the EAORON brand to pharmacies, supermarkets and specialist retailers in Australia and New Zealand. The brand also makes health products like vitamins and health supplements.
The business, which had earnings before interest, tax, depreciation and amortisation of $1.4 million for 2020 and a profit of $949,000, completed a $6 million initial public offering raise earlier this year. The funds raised will provide capital to accelerate growth and assist in the implementation of EZZ’s immediate strategic goals to:
build new manufacturing efficiencies, by bringing manufacturing in-house
enhance the pace and increase its network for international distribution expansion
establish a bespoke retail store to enable EZZ to directly engage with its retail customer base and to showcase its expanding product range.
EZZ CEO Fernando Rodriguez said: "We’re extremely happy to have closed our IPO oversubscribed and welcome the strong interest by prospective shareholders. Our growth strategy as a public company is robust and multifaceted. The combination of market penetration/expansion, value chain integration and digital transformation is expected to accelerate revenue growth and improve cost efficiencies and lift profit margin. We will continue to upgrade flagship products, introduce new products and build our brands in order to deliver value to our shareholders."