Faces Cosmetics lists on London Stock Exchange to finance expansion

Canadian branded cosmetics franchise business, Faces Cosmetics, is to list on the London Stock Exchange with a capitalization of £5.98m ($11.37m) in a move that aims to raise funds for further expansion.

The company, which was established 32 years ago and has built its name up through the marketing of cosmetic, and more lately, anti-aging products that amount to 15 categories, says it wants to raise $2.13m in the listing.

Its mainstay is color cosmetics and anti-aging products that are targeted at Caucasians and a diverse range of women with varying skin tones and ethnicity, as well as to a range of age groups, including teenagers and more mature women. Additionally the company's product portfolio includes aesthetic treatments, such as facials, manicures and waxing.

That listing will take place in the Alternative Investment Market (AIM) from September 7th and will be achieved through the sale of 50.9 million shares at 11.75 pence each.

Company chief executive, Ramesh Jolly, says that Faces Cosmetics chose to list on the London Stock Exchange rather than Canada or the US primarily to raise the profile of the company in the UK, ahead of the company's planned expansion there.

This move will involve the planned opening of a wholly-owned store in the UK, together with a further 11 franchise stores throughout the US over the course of the next two years.

The company says it has employed British entertainer and business advisor Patti Boulaye to advice on the best means of entry on to the European cosmetics markets as well as the specific characteristics of the market.

Currently the company has 54 retail outlets, which includes 35 in Canada, 16 in Mexico, two in the US and one in Ireland. The expansion plans will see the company increasing its presence in two of the largest cosmetics markets in the world - the UK and the US, in turn helping to develop global leverage and sales of $4.2m in 2005.

In the US, the company has a presence through a store in Puerto Rico, as well as a recently opened store in Arlington, Texas, while in the UK the company has a presence at Arnotts department in Ireland.