Beckham’s star power provides boost for cannabinoid skincare company
David Beckham Ventures-backed Cellular Goods, a UK-based provider of premium consumer products based on biosynthetic cannabinoids, has launched its initial public offering (IPO) to join the main market of the London Stock Exchange – raising more than £13m.
As a result, Cellular Goods will be valued at a market capitalisation of more than £25m.
Net proceeds from the IPO will be used to fund the development of Cellular Goods’ cannabinoids-based business and to enable it to finalise the development of, and launch, its initial product range for cosmetics and sports recovery.
Alexis Abraham, Chief Executive Officer of Cellular Goods, said: “We are delighted with the tremendous support we have received from institutional capital and the unprecedented level of interest shown by retail investors for an IPO of this size.
“We want to involve as many private investors as possible so that they can both be part of and benefit from our growth as we become the trusted brand in consumer cannabinoids. Technology now means that ‘listening at scale’ is not just a possibility but a requirement for successful consumer brands.
“We firmly believe that the future of the cannabinoid industry will be driven by biosynthetic production and our significantly oversubscribed IPO is a sign of investor confidence in this future.”
But, what has been the impact of having a CBD firm associated with one of sports greatest stars – David Beckham?
Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown spoke to Business Leader on the impact of DB7 on the CBD firm and wider sector.
It might seem a bit of a curve ball for a man known for free kicks rather than scoring on the stock market but David Beckham’s backing of a cannabinoids company has certainly added a puff of star power to its listed debut.
Cellular Goods which makes skincare and topical creams to provide relief for athletes using biosynthetic cannabinoids says its initial public offering was 13 times over-subscribed.
DB Ventures, the former England star’s commercial business took a minority stake in the business. Mr Beckham is clearly hoping for high returns as interest in the CBD-infused consumer products space is smoking hot. The IPO values the venture at around 25 million pounds
It’s forecast that the global CBD skin products market alone could grow by a quarter over the next five years to almost $3.5 billion. But already it’s a highly competitive field, with innovations coming thick and fast from all over the world.
260 million shares are being issued at an offer price of 5 pence a share, raising £13 million which the company will use to re-invest in its product lines.
Unlike many other IPOs which have made a debut on the market in recent months, this offer was open to investors large and small. 192 million shares have been conditionally placed with institutional investors, and another 68 million have been allocated to retail investors with 6,000 signing up through the Primary Bid platform. Trading will start on the LSE on Friday 26th February, under the ticker CBX.
It’s not clear exactly how Mr Beckham’s role will evolve with Cellular Goods but he certainly has form as a skincare and grooming guru. Whether he’ll remain behind the scenes or front and centre on the packaging, his personal brand has helped the company’s listed future start on a high.